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Kaumajet Factory produces two products: table lamps and desk lamps

Accounting

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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 $391,204, using 209,200 direct labor hours. The factory overhead budget for the Assembly Department is $631,625, using 77,500 direct labor hours.


If a desk lamp requires 2 hour of fabrication and 5 hours of assembly, the total amount of factory overhead that Kaumajet Factory will allocate to desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours if 7,100 units are produced is


a. $93,702
b. $57,865
c. $177,309
d. $315,879