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ID: 2541320 • Letter: S
Question
signment/takeAssignmen tMain.do?invoker=&takeAssignmentSessionLocator;= assignment-take&inprogress-f; uces two similar products - regular widgets and deluxe widgets. The total plant overhead budget is $661,300 w with 370,900 estimated direct labor hours. It is further estimated that deluxe widget production will need 5 direct labor hours for each unit and regular widget production will require 6 Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Challenger budgeted production for the period is 75,000 units and actual production for the period is 113,500 units? $1,011,830 Ob. $1,212,180 Oc. $110,217 Od. $202,366Explanation / Answer
Answer:
Overhead allocated to regular widget =$1,212,180
Working notes for the above answer
Plant wide factory overhead rate
=Budgeted overhead / Estimated direct labor hour
=661,300 /370900
=1.78
Factory over head rate allocation for regular widget product
=Actula unit production x Hours required per unit x Plant wide factory overhead rate
=113,500 x 6 x1.78
=1,212,180
Overhead allocated to regular widget =$1,212,180
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