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Problem - Single Plantwide Factory Overhead Rate
Lifestyle Furniture Company manufactures home furniture products. The total factory overhead for the company is budgeted at $600,000 for the year. The company manufactures two products: a computer desk and a designer table, each of which requires 4 direct labor hours (dlh) to make. Production for the year is budgeted for 5,000 units of each product.
Required -
a. Determine the total number of budgeted direct labor hours for the year.
b. Determine the single plantwide factory overhead rate.
c. Determine the factory overhead allocated per unit for each product, using the single plantwide factory overhead rate.
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