Using the single plantwide factory overhead rate with an allocation base of direct labor hours,how much factory overhead will Blackwelder Factory allocate to small lamp production if actual direct hours for the period is 285,000?
A) $275,000
B) $285,000
C) $440,000
D) $456,000

Question

Quizplus · Accepted Answer

To calculate the factory overhead allocated to small lamp production, we need to use the single plantwide factory overhead rate with the allocation base of direct labor hours.

According to the problem, the actual direct labor hours for the period is 285,000. We don't have any information on the total amount of factory overhead expenses, but we do know that the plantwide factory overhead rate is $1.60 per direct labor hour.

So, to calculate the factory overhead allocated to small lamp production, we multiply the actual direct labor hours by the predetermined overhead rate:

Factory overhead allocated to small lamp production = Actual direct labor hours x Predetermined overhead rate
Factory overhead allocated to small lamp production = 285,000 x $1.60
Factory overhead allocated to small lamp production = $456,000

Therefore, the answer is D) $456,000.

Using the Single Plantwide Factory Overhead Rate with an Allocation