Question
3. Blackwelder Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is $656,510 with 473,300 estimated direct labor
3. Blackwelder Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is $656,510 with 473,300 estimated direct labor hours. It is further estimated that small lamp production will require 253,630 direct labor hours and desk lamp production will need 219,670 direct labor hours.
Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will be allocated to the small lamp production if the actual direct hours for the period is 198,540? Round to the nearest dollar.
4.
The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information:
Set-ups | Inspections | Assembly (DLH) | ||||
Small Lamps - 2,900 units | 2,272 | 1,850 | 9,619 | |||
Desk Lamps - 8,000 units | 8,428 | 22,350 | 64,481 |
Activity Pool | Activity Base | Budgeted Amount | ||||
Set-ups | 10,700 | $106,572 | ||||
Inspections | 24,200 | $141,328 | ||||
Assembly (DLH) | 74,100 | $240,825 |
Using the following information prepared by the Dawson Company, calculate the overhead per unit to be charged to small lamps. Round to the nearest cent.
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