Name TEST 2 4.5.6 Indicate the answer choice that best completes the statement or answers the question Class: Date: Ver: 2 The Kaumajet Factory produces two products- table lamps and desk lamps. It has two separate departments Finishing and Production. The overhcad budget for the Finishing Department is $550,000, using 500,000 direct labor hours. The overhead budget for the Production Department is $400,000 using 80,000 direct labor hours 1. If the budget estimates that a table lamp will require 2 hours of finishing and 1 hours of production, how much factory overhead will the Kaumajet Factory allocate to each unit of table lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours? a. $5.00 b.$7.20 c. $6.33 d. $4.91 2. Using multiple department factory overhead instead of a single plantwide factory overhend rate: a. is simpler and less expensive to compute than a plantwide rate b. applies overhead costs to all departments equally c. results in more accurate product costs d. results in distorted product costs 3. Using a plantwide factory overhead rate distorts product costs when: a. products require different ratios of allocation-base usage in each production department b. significant differences exist in the factory overhead rates used across different production departments c. both A and B are true d. neither A nor B are true Page 1