Dawson Company Manufactures Small Table Lamps and Desk Lamps

question 24

Multiple Choice

Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: ​
-Bonnington Company manufactures small table lamps and desk lamps. The following shows the activities per product: Using the following information prepared by Bonnington Company, the total factory overhead to be allocated to small table lamps is

• A)$314,000
• B)$209,333
• C)$202,000
• D)$104,000

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Definitions:

Employee Hours

The total number of hours worked by all employees within a specific period, often used for productivity analysis and labor costing.

Direct Method

In cost accounting, a technique that allocates service department costs directly to producing departments without considering any services rendered between service departments.

Administrative Costs

All executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing or selling.

Facilities Costs

Facilities costs are the expenses associated with the physical locations where business operations occur, including maintenance, utilities, and rent.