Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget...

 

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Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $653,800 with 318,000 estimated direct labor hours. Deluxe widget production requires 5 direct labor hours for each unit, and regular widget production requires 2 direct labor hours for each unit. Using a single plantwide factory overhead rate (rounded to the nearest cent) with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to deluxe widget production if budgeted production for the period for deluxe widgets is 54,000 units and actual production of deluxe widgets for the period is 58,000 units would be O a $277,557 Ob. $597,400 Oc. $777,158 Od. $166,534 Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $653,800 with 318,000 estimated direct labor hours. Deluxe widget production requires 5 direct labor hours for each unit, and regular widget production requires 2 direct labor hours for each unit. Using a single plantwide factory overhead rate (rounded to the nearest cent) with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to deluxe widget production if budgeted production for the period for deluxe widgets is 54,000 units and actual production of deluxe widgets for the period is 58,000 units would be O a $277,557 Ob. $597,400 Oc. $777,158 Od. $166,534