RUSH

3) Ace Corporation makes two types of bandages: elastic and cotton. Elastic bandages are budgeted for 5,000 direct labor hours of production for the year: cotton bandages are budgeted for 5,000 direct labor hours of production for the year. Total factory overhead is budgeted for the year at $200,000. How much factory overhead cost will be allocated to the elastic bandages if a single plant-wide factory overhead rate is used?

None.

Less than the amount allocated to cotton bandages.

More than the amount allocated to cotton bandages.

The same amount as allocated to cotton bandages.

4) Bruster Inc. makes two products: a lawnmower with purchased parts and a snowblower parts made inhouse . The lawnmover requires 1 direct labor hour in the Fabrication department and 2 direct labor hours in the Assembly department. The snowblower requires 2 direct labor hours in the Fabrication department and 1 direct labor hour in the Assembly department. For the year, 2,000 lawnmowers are budgeted for 6,000 direct labor hours of production; 2,000 snowblowers are budgeted for 6,000 direct labor hours of production. Total factory overhead of $108,000 is budgeted for the two departments: $72,000 for Fabrication and $36,000 for Assembly. What is the department factory overhead rate for the Fabrication department?

$ 12 per direct labor hour

$ 6 per direct labor hour

$ 9 per direct labor hour

$ 27 per direct labor hour