Challenger Factory produces two similar products - regular widgets and deluxe widgets. The total plant...
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Challenger Factory produces two similar products - regular widgets and deluxe widgets. The total plant overhead budget is $666,400 with 312,500 estimated direct labor hours. It is further estimated that deluxe widget production will need 3 direct labor hours for each unit and regular widget production will require 6 direct labor hours for each unit. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Challenger Factory allocate to deluxe widget production if budgeted production for the period is 51,100 units and actual production for the period is 58,000 units? Oa. $980,728 Ob. $817,273 Oc. $370,620 Od. $163,455
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