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The Baffin Factory has determined its budgeted factory overhead budget for the y

ID: 2420641 • Letter: T

Question

The Baffin Factory has determined its budgeted factory overhead budget for the year is $484.964. They plan to produce 1,000,000 units. Budgeted direct labor hours are 391,100 and budgeted machine hours are 375,000. Using the single plant wide factory overhead rate based on labor hours, calculate the factory overhead rate for the year. Round to the nearest cent. The Cunningham Factory has determined that its budgeted factory overhead budget for the year is S608.090 and budgeted direct labor hours are 357,700. If the actual direct labors for the period are 325,500 how much overhead would be allocated to the period? 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 5550,000, 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?

Explanation / Answer

11.

Factory overhead rate = (Budgeted factory overhead) / (Labor hours)

                                    = $484,964 / 391,100

                                    = $1.24

Answer: C