The Kaumajet Factory Produces Two Products - Table Lamps and Desk

question 4

Multiple Choice

The Kaumajet Factory produces two products - table lamps and desk lamps. It has two separate departments - Finishing and Production. The overhead budget for the Finishing Department is $550,000, using 500,000 direct labor hours. The overhead budget for the Production Department is $400,000 using 80,000 direct labor hours. If the budget estimates that a table lamp will require 2 hours of finishing and 1 hours of production, how much factory overhead will the Kaumajet Factory allocate to each unit of table lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours?

• A) $6.33
• B) $4.91
• C) $5.00
• D) $7.20

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Definitions:

Power Line Carrier (PLC)

Term used to describe communication transactions delivered through the auxiliary (blue) power line in a seven-wire tractor-trailer electrical connection. Signals are converted to radio frequencies for the transaction and subsequently decoded by the receiver ECU. The means used to enable trailer ABS to communicate with the tractor electronics.

Multiplexing

A technique used in communications to combine multiple signals or streams of information into one, for the purpose of sharing a physical medium.

Data Bus Transactions

The processes or operations carried out over a data bus, involving the transfer of data between components or systems within a computer or electronic system.

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