The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information:
Calculate the total factory overhead to be charged to desk lamps.
A) $306,667
B) $235,000
C) $230,000
D) $225,000

Question

The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information:  
Calculate the total factory overhead to be charged to desk lamps.
A) $306,667 
B) $235,000 
C) $230,000 
D) $225,000

Quizplus · Accepted Answer

The total overhead for desk lamps is calculated as follows: 
Total overhead = ($315,000 x 0.5) + ($70,000 x 0.2) + ($200,000 x 0.3) 
Total overhead = $157,500 + $14,000 + $60,000 
Total overhead = $231,500 
Therefore, the correct choice is B ($235,000 is the closest option).

The Dawson Company Manufactures Small Lamps and Desk Lamps