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How much factory overhead will blackwelder factory allocate

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Reference no: EM132540858

Blackwelder Factory produces two similar products-small lamps and desk lamps. The total plant overhead budget is $618,000 with 487,000 estimated direct labor hours. It is further estimated that small lamp production will require 288,000 direct labor hours and desk lamp production will need 199,000 direct labor hours.

Question 1: Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to small lamp production if actual direct hours for the period is 178,000?

Option 1: $999,910

Option 2: $552,784

Option 3: $226,060

Option 4: $894,392

Reference no: EM132540858

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