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 $928,620, using 469,000 direct labor hours. The factory overhead budget for the Assembly Department is $615,451, using 69,700 direct labor hours. If a desk lamp requires 5 hours of fabrication and 8 hours of assembly, the amount of factory overhead that Kaumajet Factory will allocate to each unit of desk lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours is a.$8.83 b.$22.15 c.$287.97 d.$80.54

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
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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 $928,620, using 469,000 direct labor hours. The factory overhead budget for the Assembly Department is $615,451, using 69,700 direct labor hours.

If a desk lamp requires 5 hours of fabrication and 8 hours of assembly, the amount of factory overhead that Kaumajet Factory will allocate to each unit of desk lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours is

a.$8.83
b.$22.15
c.$287.97
d.$80.54 
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