Blackwelder Factory Produces Two Similar Products - Small Lamps and Desk

question 48

Multiple Choice

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

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

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Definitions:

Degrees of Freedom

Degrees of freedom typically refer to the number of independent pieces of information available to estimate another piece of information or the parameters of a population.

Output

Output refers to the amount of something produced by a person, machine, or industry, or the information produced by a computer or software program.

Multicollinearity

A situation in regression analysis where independent variables are highly correlated, potentially distorting the results of the analysis.

Independent Variables

Elements within a model or experiment that are deliberately changed or grouped to assess their effect on variables that depend on them.