The total factory overhead for Big Light Company is budgeted for the year at $1,377,410. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 10,300 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 17,700 units. Each desk lamp requires 2 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours B. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights S per unit Desk lamps S per unit
The total factory overhead for Big Light Company is budgeted for the year at $1,377,410. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 10,300 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 17,700 units. Each desk lamp requires 2 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours B. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights S per unit Desk lamps S per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The total factory overhead for Big Light Company is budgeted for the year at $1,377,410. Big Light manufactures two different products: night lights and desk
lamps. Night lights are budgeted for 10,300 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 17,700 units. Each desk lamp
requires 2 hours of direct labor.
a. Determine the total number of budgeted direct labor hours for the year.
direct labor hours
B. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places
per direct labor hour
c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your
answers to two decimal places.
Night lights S
per unit
Desk lamps S
per unit
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