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Blackwelder Factory produces two similar products-small lamps and desk lamps. The total plant overhead budget is...

Blackwelder Factory produces two similar products-small lamps and desk lamps. The total plant overhead budget is $529,000 with 540,000 estimated direct labor hours. It is further estimated that small lamp production will require 264,000 direct labor hours and desk lamp production will need 276,000 direct labor hours.

Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to small lamp production if actual direct hours for the period is 191,000?

a.$187,180

b.$731,183

c.$366,083

d.$506,000

2)

Blackwelder Factory produces two similar products-small lamps and desk lamps. The total plant overhead budget is $582,000 with 471,000 estimated direct labor hours. It is further estimated that small lamp production will require 267,000 direct labor hours and desk lamp production will need 204,000 direct labor hours.

Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to desk lamp production if actual direct hours for the period is 178,000.

a.$220,720

b.$507,824

c.$873,000

d.$361,280

3)

Challenger Factory produces two similar products - regular widgets and deluxe widgets. The total plant overhead budget is $563,000 with 350,200 estimated direct labor hours. It is further estimated that deluxe widget production will need 5 direct labor hours for each unit and regular widget production will require 6 direct labor hours for each unit.

Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Challenger Factory allocate to regular widget production if budgeted production for the period is 75,000 units and actual production for the period is 104,800 units?

a.$1,012,368

b.$842,410

c.$93,833

d.$168,482

Solutions

Expert Solution

1)

Step-1:Calculation of single plant wide overhead recovery rate
Overhead recovery rate = Total overhead costs / Total direct labor hours
= $       529,000 /        540,000 direct labor hours
= $ 0.98 per direct labor hour
Step-2:Calculation of overhead allocated to small lamp
Allocated overhead = Actual direct labor hours * Overhead recovery rate
=           191,000 * $ 0.98
= $       187,180

2)

Step-1:Calculation of single plant wide overhead recovery rate
Overhead recovery rate = Total overhead costs / Total direct labor hours
= $       582,000 / 471,000 direct labor hours
= $               1.24 per direct labor hour
Step-2:Calculation of overhead allocated to small lamp
Allocated overhead = Actual direct labor hours * Overhead recovery rate
=           178,000 * $            1.24
= $ 220,720

3)

Step-1:Calculation of single plant wide overhead recovery rate
Overhead recovery rate = Total overhead costs / Total direct labor hours
= $       5,63,000 / 350,200 direct labor hours
= $               1.607652 per direct labor hour
Step-2:Calculation of overhead allocated to small lamp
Allocated overhead = Actual direct labor hours * Overhead recovery rate
=           104,800 * $            1.607652
= $       168,482

ekkarill92 answered 3 months ago
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