Question

CH 18 Quiz CengageNOWV2 Online teaching and learning resource from Cengage Learning Calculator 2 The total factory overhead for Big Light Company is budgeted for the year at $1,007,400. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 8,200 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 9,600 units. Each desk lamp requires 2 hours of direct labor. a Determine the total number of budgeted direct labor hours for the year. direct labor hours b Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. per direct labor hour c Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b), Round your answers to two decimal places Night Lights perunt Desk Lamps per unit

Answer 1

Factory overheads	10,07,400
Night lamps	8200 units	3 hours
Desk lamps	9600 units	2 hours
a) Toatl no of budgeted labour hours
(8200*3)+(9600*2) =	43800
b) Factory overhead rate = total overhead/tota direct labour hours
	=1007400/43800
	= 23.00	per direct labour hour
c) Fcatory overhead allocated per unit
Night lamps	(3*23)	69.00	per unit
Desk Lamps	(2*23)	46.00	per unit