Business, 06.12.2021 18:20 skylerlorain1
The total factory overhead for Big Light Company is budgeted for the year at $985,600. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 17,200 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 9,400 units. Each desk lamp requires 2 hours of direct labor.
a. Determine the total number of budgeted direct labor hours for the year.
b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base.
c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b).
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