Question
Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $698,000 with 504,000 estimated direct labor
Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $698,000 with 504,000 estimated direct labor hours. It is further estimated that small table lamp production will require 267,000 direct labor hours, and desk lamp production will need 125,000 direct labor hours. Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Blackwelder Factory will allocate to small table lamp production if actual direct labor hours for the period for small table lamp production is 182,000 would be Oa. $536,017 Ob. $251,160 Oc. $1,023,989 Od. $786,354
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