Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $614,600 with 328,400 estimated direct labor hours. Deluxe widget production requires 4 direct labor hours for each unit, and regular widget production requires 4 direct labor hours for each unit. Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to deluxe widget production if budgeted production for the period for deluxe widgets is 49,100 units and actual production of deluxe widgets for the period is 58,000 units would be a.$735,124 b.$459,453 c.$433,840 d.$137,836
Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $614,600 with 328,400 estimated direct labor hours. Deluxe widget production requires 4 direct labor hours for each unit, and regular widget production requires 4 direct labor hours for each unit. Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to deluxe widget production if budgeted production for the period for deluxe widgets is 49,100 units and actual production of deluxe widgets for the period is 58,000 units would be a.$735,124 b.$459,453 c.$433,840 d.$137,836
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory
Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to deluxe widget production if budgeted production for the period for deluxe widgets is 49,100 units and actual production of deluxe widgets for the period is 58,000 units would be
a.$735,124
b.$459,453
c.$433,840
d.$137,836
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