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Question - The total factory overhead for Big Light Company is budgeted for the year at $807,500. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 60,000 units. Each night light requires 1/2 hour of direct labor. Desk lamps are budgeted for 80,000 units. Each desk lamp requires 2 hours of direct labor.
Required -
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. Round your answer to two decimal places.
c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places.
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