The total factory overhead for Big Light Company is budgeted for the year at $1,701,700. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 13,100 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 16,100 units. Each desk lamp requires 2 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b).

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 2BE: Multiple production department factory overhead rates The total factory overhead for Bardot Marine...
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The total factory overhead for Big Light Company is budgeted for
the year at $1,701,700. Big Light manufactures two different
products: night lights and desk lamps. Night lights are budgeted
for 13,100 units. Each night light requires 3 hours of direct labor.
Desk lamps are budgeted for 16,100 units. Each desk lamp
requires 2 hours of direct labor.
a. Determine the total number of budgeted direct labor hours for
the year.
b. Determine the single plantwide factory overhead rate using
direct labor hours as the allocation base.
c. Determine the factory overhead allocated per unit for each
product using the single plantwide factory overhead rate
determined in (b).
Transcribed Image Text:The total factory overhead for Big Light Company is budgeted for the year at $1,701,700. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 13,100 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 16,100 units. Each desk lamp requires 2 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b).
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