Question
The total factory overhead for Big Light Company is budgeted for the year at $1,542,000. Big Light manufactures two different products: night lights and desk
The total factory overhead for Big Light Company is budgeted for the year at $1,542,000. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 12,900 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 19,200 units. Each desk lamp requires 2 hours of direct labor.
a Determine the total number of budgeted direct labor hours for the year. direct labor hours
b Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. $ per direct labor hour
c Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places.
Night Lights | $ per unit |
Desk Lamps | $ per unit |
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