Question
The Kaumajet Factory produces two products-table lamps and desk lamps. It has two separate departments - Finishing and Production. The overhead budget for the Finishing
The Kaumajet Factory produces two products-table lamps and desk lamps. It has two separate departments - Finishing and Production. The overhead budget for the Finishing Department is $819,283, using 457,700 direct labor hours. The overhead budget for the Production Department is $357,944 using 80,800 direct labor hours.
If the budget estimates that a desk lamp will require 3 hours of finishing and 6 hours of production, what is the total amount of factory overhead the Kaumajet Factory will allocate to desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours, if 8,800 units are produced?
$173,141
$128,208
$38,984
$281,160
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