How much factory overhead will be allocated to the small


Prob;lem

Blackwelder Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is $561,130 with 539,910 estimated direct labor hours. It is further estimated that small lamp production will require 253,070 direct labor hours and desk lamp production will need 286,840 direct labor hours.

Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will be allocated to the small lamp production if the actual direct hours for the period is 234,750? Round to the nearest dollar.

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