Question

question content area the total factory overhead for big light company is budgeted for the year at $1,263,850. big light manufactures two different products: night lights and desk lamps. night lights are budgeted for 23,000 units. each night light requires 2 hours of direct labor. desk lamps are budgeted for 11,500 units. each desk lamp requires 3 hours of direct labor. a. determine the total number of budgeted direct labor hours for the year. fill in the blank 1 of 1 direct labor hours b. determine the single plantwide factory overhead rate using direct labor hours as the allocation base. round your answer to two decimal places. fill in the blank 1 of 1$ per direct labor hour 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. night lights fill in the blank 1 of 1$ per unit desk lamps fill in the blank 1 of 1$ per unit

Answer 1

The total budgeted direct labor hours are 80,500 hours. The factory overhead rate per direct labor hour is $15.70. The overhead cost per night light is $31.40 and per desk lamp is $47.10.

The student has asked to calculate the total number of budgeted direct labor hours for the year, the single plantwide factory overhead rate using direct labor hours as the allocation base, and the factory overhead allocated per unit for each product using the determined overhead rate.

Total Budgeted Direct Labor Hours

For night lights: 23,000 units × 2 hours/unit = 46,000 hours

For desk lamps: 11,500 units × 3 hours/unit = 34,500 hours
Total direct labor hours = 46,000 hours + 34,500 hours = 80,500 hours

Factory Overhead Rate Per Direct Labor Hour

Total factory overhead: $1,263,850
Overhead rate per hour = Total factory overhead ÷ Total direct labor hours

Overhead rate per hour = $1,263,850 ÷ 80,500 hours = $15.70 per direct labor hour (rounded to two decimal places)

Factory Overhead Allocated Per Unit

For night lights: 2 hours × $15.70 = $31.40 per unit (rounded to two decimal places)

For desk lamps: 3 hours × $15.70 = $47.10 per unit (rounded to two decimal places)