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Problem 1: Nite Lite Factory produces two similar products - small lamps and desk lamps. The total plant budget is P640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will use 3 direct labor hours for each unit and desk lamp production will require 1.25 direct labor hours for each unit. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will be allocated to the small lamp production if the actual production for the period is 108,000 units?
a. P518,400
b. P324,000
c. P580,800
d. P363,000
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