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

question 30

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 desk lamp production if actual direct labor hours for the period for desk lamps is 118,000 would be

• A)$118,000
• B)$200,000
• C)$188,800
• D)$125,000

Recognize the conditions under which a total-market approach is suitable for product marketing.

Understand the psychological variables influencing buying behavior.

Recognize the importance of attitudes towards buying behavior.

Grasp the sources and methods for collecting primary market data.

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Definitions:

Fixed Costs Per Unit

Fixed costs per unit decrease as production increases because the total fixed costs are spread over a larger number of units.

Selling Price

The amount of money charged for a product or service, or the sum for which something is sold.

Margin of Safety

The difference between actual sales and the break-even point, indicating how much sales can fall before a business incurs a loss.

Fixed Expenses

Costs that do not vary with the level of production or sales, remaining constant over a period of time.