Kaumajet Factory produces two products: table lamps and desk lamps. It has two separate departments: Fabrication and Assembly. The factory overhead budget for the Fabrication Department is $834,302, using 518,200 direct labor hours. The factory overhead budget for the Assembly Department is $518,020, using 87,800 direct labor hours. If a table lamp requires 2 hours of fabrication and 5 hour of assembly, the total amount of factory overhead that Kaumajet Factory will allocate to table lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours if 10,000 units are produced is Oa. $156,209 Ob. $59,000 Oc. $154,019 Od. $327,200

Kaumajet Factory produces two products: table lamps and desk lamps. It has two separate departments: Fabrication and Assembly. The factory overhead budget for the Fabrication Department is $834,302, using 518,200 direct labor hours. The factory overhead budget for the Assembly Department is $518,020, using 87,800 direct labor hours. If a table lamp requires 2 hours of fabrication and 5 hour of assembly, the total amount of factory overhead that Kaumajet Factory will allocate to table lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours if 10,000 units are produced is Oa. $156,209 Ob. $59,000 Oc. $154,019 Od. $327,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kaumajet Factory produces two products: table lamps and desk lamps. It has two separate departments: Fabrication and Assembly. The factory overhead budget for the Fabrication Department is $644,490, using 325,500 direct labor hours. The factory overhead budget for the Assembly Department is $596,624, using 76,100 direct labor hours. If a table lamp requires 4 hours of fabrication and 7 hour of assembly, the total amount of factory overhead that Kaumajet Factory will allocate to table lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours if 9,200 units are produced is a.$72,128 b.$312,751 c.$150,035 d.$577,760
Milton6 Company uses a standard cost system in which manufacturing overhead costs are applied to units of product (widgets) on the basis of direct labor hours. Standards call for 2 direct labor hours per widget. The standard labor rate is $10 per hour. Four pounds of material are needed for each widget at a standard cost of $2.25 per pound. The standard variable overhead rate is $3.50 per direct labor hour. Milton6 actually produces 17,000 widgets during the year. Direct labor costs are S359,100 for 34,200 hours. Milton6 purchases 70,000 pounds of materials at $2.50 per pound, and used 65,400 pounds of those materials (the rest are in inventory at the end of the year) Actual variable overhead costs $92,000. For variable overhead, compute the spending(price) variance and label it is favorable (F) or unfavorable (U). А. 700 F В. 32,500 F C. 27,700 U D. 700 U E. 32,500 U F. 27,700 F G. 27,000 U Н. 27,000 F B.
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Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments-Molding and Assembly. The Molding Department employs 15 people, and the Assembly Department employs 77 people. Each person in these two departments works 1,910 hours per year. The production-related overhead costs for the Molding Department are budgeted at $197,000, and the Assembly Department costs are budgeted at $97,000. Two support departments-Engineering and General Factory-directly support the two production departments and have budgeted costs of $248,000 and $405,000, respectively. The production departments' overhead rates cannot be determined until the support departments' costs are properly allocated. The following schedule reflects the use of the Engineering Department's and General Factory Department's output by the various departments. General Factory Molding Assembly 7,600 Engineering hours Square feet 445,880 69,080 For all requirements, round…
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