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Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $552,000 with 513,000 estimated direct labor hours. It is further estimated that small table lamp production will require 289,000 direct labor hours, and desk lamp production will need 125,000 direct labor hours.
Problem 1: Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Blackwelder Factory will allocate to desk lamp production if actual direct labor hours for the period for desk lamps is 188,000 would be
a. $203,040b. $848,553c. $463,286d. $348,960
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