Challenger Factory Produces Two Similar Products - Regular Widgets and Deluxe

question 93

Multiple Choice

Challenger Factory produces two similar products - regular widgets and deluxe widgets. The total plant overhead budget is $675,000 with 300,000 estimated direct labor hours. It is further estimated that deluxe widget production will need 3 direct labor hours for each unit and regular widget production will require 2 direct labor hours for each unit.
Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Challenger Factory allocate to deluxe widget production if budgeted production for the period is 50,000 units and actual production for the period is 58,000 units?

• A) $391,500
• B) $225,000
• C) $261,000
• D) $337,500

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Definitions:

Gift Giving

The act of presenting others with gifts as a means of expressing affection, appreciation, or for social or ritual purposes.

Mindful

Being conscious of what you are doing, thinking, and sensing at any given moment.

Intercultural Competence

The ability to communicate effectively and appropriately with people of other cultures.

Mindfulness

A practice of maintaining a non-judgmental state of complete awareness of one's thoughts, emotions, or experiences on a moment-to-moment basis.