Calculator The total factory overhead for Big Light Company is budgeted for the

Question

Calculator The total factory overhead for Big Light Company is budgeted for the year at $1,234,140. Big Light manufactures two different products - night lights and desk lamps. Night lights is budgeted for 20,500 units. Each night light requires three hour of direct labor. Desk lamps is budgeted for 15,300 units. Each desk lamp requires two hours of direct labor. a Determine the total number of budgeted direct labor hours for year. b Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places, if necessary. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate calculated in (b). Round your answers to two decimal places, if necessary Night Lights per unit Desk Lamps )per unit

Explanation / Answer

a) Total number of budgeted direct labor hours = 20500*3 + 15300*2 = 61500 + 30600 = 92100

b) 1234140/92100 = $13.40

c) Night lights = 3*13.40 = 40.20

Desk lamps = 2*13.40 = 26.80

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