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 $903,060, using 501,700 direct labor hours. The overhead budget for the Production Department is $357,678 using 64,100 direct labor hours. If the budget estimates that a desk lamp will require 5 hours of finishing and 8 hours of production, how much factory overhead will the Kaumajet Factory allocate to each unit of desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours? a. $255.67 b. $19.67 c. $5.58 d. $53.64

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 $903,060, using 501,700 direct labor hours. The overhead budget for the Production Department is $357,678 using 64,100 direct labor hours. If the budget estimates that a desk lamp will require 5 hours of finishing and 8 hours of production, how much factory overhead will the Kaumajet Factory allocate to each unit of desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours? a. $255.67 b. $19.67 c. $5.58 d. $53.64

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 2E: Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted...

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