Blackwelder Factory Produces Two Similar Products - Small Lamps and Desk

question 10

Multiple Choice

Blackwelder Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is $640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will require 275,000 direct labor hours and desk lamp production will need 125,000 direct labor hours. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will be allocated to the desk lamp production if the actual direct hours for the period is 118,000?

• A) $118,000
• B) $200,000
• C) $188,800
• D) $125,000

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Definitions:

Dysfunctional Conflict

A type of conflict that is destructive, hinders goal achievement, and typically arises from poor communication, misunderstandings, or personal issues between individuals or groups.

Interdependence

A reciprocal relation between entities where each depends on the other, often seen in team dynamics, ecosystems, and global economies.

Subunit Goals

Objectives set for specific divisions or departments within an organization.

Divisionalized Structure

An organizational framework where operations are segregated based on products, markets, or geographies, allowing for specialization and focus.