Question Content Area

Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $$675,000$ with $300,000$ estimated direct labor hours. Deluxe widget production requires $3$ direct labor hours for each unit, and regular widget production requires $2$ direct labor hours for each unit.

Using a single plantwide factory overhead rate $($rounded to the nearest cent$)$ with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to regular widget production if budgeted production of regular widgets for the period is $75,000$ units and actual production of regular widgets for the period is $72,000$ units would be

a$.$ $$324,000$

b$.$ $$168,750$

c$.$ $$162,000$

d$.$ $$337,500$