The Kaumajet Factory Produces Two Products - Table Lamps and Desk

question 60

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 be allocated 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:

Upper Managers

Senior-level executives responsible for making strategic decisions and overseeing the overall operation of an organization.

Advancement Of Women

Efforts and initiatives aimed at promoting the higher representation, status, and well-being of women in various spheres of society.

Procedural Justice

The fairness of the process by which outcomes are allocated in an organization.

Outcomes Allocated

The distribution or assignment of results or benefits from a process or activity to different stakeholders or participants.