The total factory overhead for Big Light Company is budgeted for the year at $1,441,440. Big Light manufactures two different products - night lights and desk lamps. Night lights is budgeted for 16,500 units. Each night light requires two hour of direct labor. Desk lamps is budgeted for 15,400 units. Each desk lamp requires three hours of direct labor. a Determine the total number of budgeted direct labor hours for year. b Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places, if necessary.$ c Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate calculated in (b). Round your answers to two decimal places, if necessary. Night Lights $ per unit Desk Lamps $ per unit
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
The total factory overhead for Big Light Company is budgeted for the year at $1,441,440. Big Light manufactures two different products - night lights and desk lamps. Night lights is budgeted for 16,500 units. Each night light requires two hour of direct labor. Desk lamps is budgeted for 15,400 units. Each desk lamp requires three hours of direct labor.
a Determine the total number of budgeted direct labor hours for year.
b Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places, if necessary.
$
c Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate calculated in (b). Round your answers to two decimal places, if necessary.
| Night Lights | $ per unit |
| Desk Lamps | $ per unit |
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