Blackwelder Factory Produces Two Similar Products: Small Table Lamps and Desk

question 98

Multiple Choice

Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $640,000 with 400,000 estimated direct labor hours. It is further estimated that small table lamp production will require 275,000 direct labor hours, and desk lamp production will need 125,000 direct labor hours.​
-Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Blackwelder Factory will allocate to small table lamp production if actual direct labor hours for the period for small table lamp production is 285,000 would be

• A)$275,000
• B)$285,000
• C)$440,000
• D)$456,000

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Definitions:

Antibiotics

Medicinal substances used to kill or inhibit the growth of bacteria.

Gonorrhea

A sexually transmitted infection caused by the bacterium Neisseria gonorrhoeae, characterized by pain during urination and discharge from the genitalia.

Chlamydia

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