Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $638,300 with 306,000 estimated direct labor hours. Deluxe widget production requires 4 direct labor hours for each unit, and regular widget production requires 2 direct labor hours for each unit. Using a single plantwide factory overhead rate (rounded to the nearest cent) with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to regular widget production if budgeted production of regular widgets for the period is 75,000 units and actual production of regular widgets for the period is 101,300 units would be a. $845,226 b. $423,434 c. $319,150 d. $211,307
Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $638,300 with 306,000 estimated direct labor hours. Deluxe widget production requires 4 direct labor hours for each unit, and regular widget production requires 2 direct labor hours for each unit. Using a single plantwide factory overhead rate (rounded to the nearest cent) with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to regular widget production if budgeted production of regular widgets for the period is 75,000 units and actual production of regular widgets for the period is 101,300 units would be a. $845,226 b. $423,434 c. $319,150 d. $211,307
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
164.
Subject :- Accounting
Transcribed Image Text:Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $638,300 with 306,000
estimated direct labor hours. Deluxe widget production requires 4 direct labor hours for each unit, and regular widget production requires 2 direct labor
hours for each unit.
Using a single plantwide factory overhead rate (rounded to the nearest cent) with an allocation base of direct labor hours, the factory overhead that
Challenger Factory will allocate to regular widget production if budgeted production of regular widgets for the period is 75,000 units and actual
production of regular widgets for the period is 101,300 units would be
a. $845,226
b. $423,434
c. $319,150
d. $211,307
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