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 $550,000, using 500,000 direct labor hours. The factory overhead budget for the Assembly Department is $400,000, using 80,000 direct labor hours.   If a table lamp requires 2 hours of fabrication and 1 hour of assembly, the amount of factory overhead that Aquamarine 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 ____.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
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Chapter23: Evaluating Variances From Standard Costs
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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 $550,000, using 500,000 direct labor hours. The factory overhead budget for the Assembly Department is $400,000, using 80,000 direct labor hours.

 

If a table lamp requires 2 hours of fabrication and 1 hour of assembly, the amount of factory
overhead that Aquamarine 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 ____.

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