# Blackwelder Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is \$640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will require 275,000 direct labor hours and desk lamp production will need 125,000 direct labor hours.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.\$456,000b.\$285,000c.\$275,000d.\$440,000

Question
Asked Mar 26, 2019
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Blackwelder Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is \$640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will require 275,000 direct labor hours and desk lamp production will need 125,000 direct labor hours.

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.\$456,000
b.\$285,000
c.\$275,000
d.\$440,000
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## Expert Answer

Step 1

Overhead Cost:

Overhead cost is the expense incurred in the operations of a business. This expense does not include the cost which is incurred on labor. Therefore; this cost is known as overhead cost.

Step 2

Compute the factor...

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