Kaumajet Factory Produces Two Products: Table Lamps and Desk Lamps

question 9

Multiple Choice

Kaumajet Factory produces two products: table lamps and desk lamps. It has two separate departments: Fabrication and Assembly. The factory overhead budget for the Fabrication Department is $550,000, using 500,000 direct labor hours. The factory overhead budget for the Assembly Department is $400,000, using 80,000 direct labor hours.
-If a desk lamp requires 1 hour of fabrication and 2 hours of assembly, the amount of factory overhead that Kaumajet Factory will allocate to each unit of desk lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours is

• A)$11.10
• B)$4.91
• C)$5.00
• D)$7.20

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Definitions:

Connective Tissue

Type of animal tissue that binds structures together, provides support and protection, fills spaces, stores fat, and forms blood cells; adipose tissue, cartilage, bone, and blood are types of connective tissue; living cells in a non-living matrix.

Uremia

A condition resulting from the accumulation of waste products in the blood due to kidney failure, leading to various symptoms and health issues.

Nephrons

The functional units of the kidney, responsible for filtering blood and producing urine.

Urea

A waste product formed in the liver, broken down from proteins, and excreted in urine.