Reference no: EM132825659

Problem 1: Kaumajet Factory produces two products: table lamps and desk lamps. It has two separate departments: Fabrication and Assembly. The factory overhead budget for the Fabrication Department is $362,489, using 358,900 direct labor hours. The factory overhead budget for the Assembly Department is $429,870, using 62,300 direct labor hours. If a table lamp requires 4 hours of fabrication and 7 hour of assembly, the amount of factory overhead that Kaumajet Factory will allocate to each unit of table lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours is

a. $6.90

b. $12.72

c. $139.89

d. $52.34