Blackwelder factory produces two similar products-small lamps and desk lamps. the total plant overhead budget is $643,000 with 503,000 estimated direct labor hours. it is further estimated that small lamp production will require 284,000 direct labor hours and desk lamp production will need 219,000 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 desk lamp production if actual direct hours for the period is 188,000. a. $551,982 b. $971,340 c. $240,640 d. $402,360

c. $240,640

Explanation:

we have to distribute the overhead cost over the cost driver

643,000 / 503,000 = 1.27833 = 1.28 rate

then we multiply this rate by the actual hours of desk lamp production

actual desk lamp hours x rate = alllocated MO

188,000 x 1.28 = 240,640

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer(d) encourage cooperation by improving the chances of mutually agreeable transactions;