The Kaumajet Factory produces two products-table lamps and desk lamps. It has two separate departments-Finishing and Production. The overhead budget for the Finishing Department is $550,000, using 500,000 direct labor hours. The overhead budget for the Production Department is $400,000 using 80,000 direct labor hours. If the budget estimates that a table lamp will require 2 hours of finishing and 1 hour of production, how much factory overhead will the Kaumajet Factory allocate to each table lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours? O $5.00 O S7.00 O $11.10 O 57.20

The Kaumajet Factory produces two products-table lamps and desk lamps. It has two separate departments-Finishing and Production. The overhead budget for the Finishing Department is $550,000, using 500,000 direct labor hours. The overhead budget for the Production Department is $400,000 using 80,000 direct labor hours. If the budget estimates that a table lamp will require 2 hours of finishing and 1 hour of production, how much factory overhead will the Kaumajet Factory allocate to each table lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours? O $5.00 O S7.00 O $11.10 O 57.20

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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