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The Total Factory Overhead for Big Light Company Is Budgeted

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The total factory overhead for Big Light Company is budgeted for the year at $807,500.Big Light manufactures two different products - night lights and desk lamps.Night lights is budgeted for 60,000 units.Each night light requires 1 / 2 hour of direct labor.Desk lamps is budgeted for 80,000 units.Each desk lamp requires 2 hours of direct labor.Determine (a)the total number of budgeted direct labor hours for year,(b)the single plantwide factory overhead rate using direct labor hours as the allocation base,and (c)the factory overhead allocated per unit for each product using the single plantwide factory overhead rate calculated in (b).


Definitions:

Job Lateness

The amount of time by which the completion of a job exceeds its originally scheduled or planned delivery time.

Machine Centre

A specific location or unit within a manufacturing facility where machines perform particular functions or operations.

Sequence

A specific order in which related events, movements, or things follow each other.

Throughput Time

The time it takes for a product to go through the production process with no waiting. It is the time of the longest path through the system.

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