Challenger Factory Produces Two Similar Products: Regular Widgets and Deluxe

question 51

Multiple Choice

Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $675,000 with 300,000 estimated direct labor hours. Deluxe widget production requires 3 direct labor hours for each unit, and regular widget production requires 2 direct labor hours for each unit.​
-Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to regular widget production if budgeted production of regular widgets for the period is 75,000 units and actual production of regular widgets for the period is 72,000 units would be

• A)$168,750
• B)$324,000
• C)$162,000
• D)$337,500

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Definitions:

Local Practices

Customary ways of operating within a specific geographical or cultural context, often adopted by businesses to ensure compliance and effectiveness.

Repatriate

The process of returning a person to their country of origin or citizenship after they have been abroad.

Home Country

The county in which a corporation's headquarters is located, influencing its management practices and approach to international business.

Foreign Country

A nation different from one's own, especially in terms of home or operational base.