Using the Single Plantwide Factory Overhead Rate with an Allocation

question 30

Multiple Choice

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:

Liabilities

Financial obligations or debts owed by a business or individual to another entity, payable in money, goods, or services.

Equity

The value of an owner's interest in a property or business, determined by subtracting liabilities from assets.

Assets

Economic resources owned or controlled by a business, expected to produce future benefits.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.