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Challenger Factory produces two similar products -- deluxe widgets and regular widgets. The total plant overhead budget is $675,000 with 300,000 estimated direct labor hours.
Challenger Factory produces two similar products -- deluxe widgets and regular widgets. The total plant overhead budget is $675,000 with 300,000 estimated direct labor hours. It is further estimated that deluxe widget production will need 3 direct labor hours for each unit, and regular widgets production will require 2 direct labor hours for each unit Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Challenger allocate to deluxe widget production if budgeted production for the period is 50,000 units and actual production for the period is 58,000 units? $261,000 $391,500 $225,000 $337,500 Question 25 4 pts From the data in Question 24 above and using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Challenger allocate to regular widget production if budgeted production for the period is 75,000 units and actual production for the period is 72,000 units? $324,000 $337,500 $162,000 $168,750
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