Kaumajet Factory Produces Two Products: Table Lamps and Desk Lamps

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.
-Scoresby Co. uses 6 machine hours and 2 direct labor hours to produce Product X. It uses 8 machine hours and 16 direct labor hours to produce Product Y. Scoresby's Assembly and Finishing departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. How much total factory overhead will be allocated to a unit of each of the two products?

A) Product X, $3,200; Product Y, $9,600
B) Product X, $800; Product Y, $800
C) Product X, $1,760; Product Y, $4,480
D) Product X, $1,440; Product Y, $2,560

Correct Answer:

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