The Kaumajet Factory Produces Two Products - Table Lamps and Desk

question 23

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 desk lamp will require 1 hours of finishing and 2 hours of production, how much factory overhead will the Kaumajet Factory allocate to each unit of desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours?

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

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Definitions:

Emotional Distance

A state in which people emotionally withdraw or isolate themselves from others, typically as a protective measure.

Preoccupation

The state of being absorbed with or engrossed in a particular thought, activity, or concern, often to the exclusion of other considerations.

Arranged Marriages

Marriages where partners are selected by individuals other than those getting married, often with consideration of familial, cultural, or social interests.

Collectivist

Pertaining to cultures or societies where people are integrated into strong, cohesive groups and prioritize the group's needs over individual desires.