The Kaumajet Factory Produces Two Products - Table Lamps and Desk

question 20

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, what is the total amount of factory overhead to be allocated to desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours, if 26,000 units are produced?

• A) $540,000
• B) $187,200
• C) $475,000
• D) $288,600

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Definitions:

Archaeopteryx

An early bird-like dinosaur from the Late Jurassic period, significant for its blend of avian and reptilian features.

Reptilian Tail

The elongated, often flexible posterior portion of the body in reptiles, which can serve various functions such as balance, locomotion, and storage of fats.

Modern Birds

Avian species existing today, characterized by features like feathers, beaks without teeth, and lightweight skeletons.

Phylogeny

The branch of biology that deals with the evolutionary development and diversification of a species or group of organisms.