Challenger Factory Produces Two Similar Products - Regular Widgets and Deluxe

question 107

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 regular widget production if budgeted production for the period is 75,000 units and actual production for the period is 72,000 units?

• A) $168,750
• B) $324,000
• C) $162,000
• D) $337,500

---

Definitions:

Create From Selection

A feature in various software applications that allows users to generate new content or objects based on a selected item or area.

Defined Names

In spreadsheet applications, user-assigned names to cells, ranges, formulas, or constants to make referencing them easier and more intuitive.

CONCAT Function

The CONCAT Function is used in spreadsheet programs to join two or more text strings into one string, facilitating the combination of data from different cells.

Editing Language

Editing language refers to the language settings that determine the spell check, grammar, and dictionary functionalities in word processing and other editing software.