Question
1. The Kaumajet Factory produces two products - table lamps and desk lamps. It has two separate departments - finishing and production. The overhead budget
1. 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 $834,104, using 508,600 direct labor hours. The overhead budget for the production department is $356,400 using 52,800 direct labor hours.
If the budget estimates that a desk lamp will require 2 hours of finishing and 5 hours of production, how much factory overhead will be allocated to each unit of desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours? Round the answer to the nearest cent.
2.
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 $584,766, using 309,400 direct labor hours. The overhead budget for the production department is $527,126 using 58,700 direct labor hours.
If the budget estimates that a desk lamp will require 4 hours of finishing and 7 hours of production, what is the total amount of factory overhead to be allocated to desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours, if 10,700 units are produced?
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