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 $766,896, using 491,600 direct labor hours. The factory overhead budget for the Assembly Department is $654,585, using 75,500 direct labor hours. If a table lamp requires 5 hours of fabrication and 8 hour of assembly, the amount of factory overhead that Kaumajet Factory will allocate to each unit of table lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours is a.$244.74 b.$8.67 c.$18.83 d.$77.16

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 $766,896, using 491,600 direct labor hours. The factory overhead budget for the Assembly Department is $654,585, using 75,500 direct labor hours.

If a table lamp requires 5 hours of fabrication and 8 hour of assembly, the amount of factory overhead that Kaumajet Factory will allocate to each unit of table lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours is

a.$244.74

b.$8.67

c.$18.83

d.$77.16

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