The total factory overhead for Landen Company is budgeted for the year at $675,000. Landen manufactures two drapery products: sheer curtains and insulated curtains. These products each require six direct labor hours to manufacture. Each product is budgeted for 7,500 units of production for the year. Determine the factory overhead allocated per unit for insulated curtains using the single plantwide factory overhead rate. A. $45 B. $90 C. $270 D. $15

Cornerstones of Cost Management (Cornerstones Series)
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Chapter9: Standard Costing: A Functional-based Control Approach
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The total factory overhead for Landen Company is
budgeted for the year at $675,000. Landen manufactures
two drapery products: sheer curtains and insulated
curtains. These products each require six direct labor
hours to manufacture. Each product is budgeted for
7,500 units of production for the year.
Determine the factory overhead allocated per unit for
insulated curtains using the single plantwide factory
overhead rate.
A. $45
B. $90
C. $270
D. $15
Transcribed Image Text:The total factory overhead for Landen Company is budgeted for the year at $675,000. Landen manufactures two drapery products: sheer curtains and insulated curtains. These products each require six direct labor hours to manufacture. Each product is budgeted for 7,500 units of production for the year. Determine the factory overhead allocated per unit for insulated curtains using the single plantwide factory overhead rate. A. $45 B. $90 C. $270 D. $15
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