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Answer:
Challenger Factory
The total factory overhead that Challenger Factory will allocate to regular widget production if budgeted production is 75,000 units and actual production for the period is 127,500 units would be:
= $795,600.
Explanation:
a) Data and Calculations:
Total budgeted factory overhead = $589,600
Total estimated direct labor hours = 376,800
Overhead rate = $589,600/376,800 = $1.56
Direct labor hours per unit of widget = 4 hours
Budgeted production of regular widgets for the period = 75,000 units
Total direct labor hours for the period = 75,000 * 4 = 300,000 hours
Actual production of regular widgets for the period = 127,500
Total direct labor hours for regular widgets = 510,000 (127,500 *4)
Total factory overhead that Challenger Factory will allocate to regular widget production if budgeted production is 75,000 units and actual production for the period is 127,500 units would be:
= 510,000 * $1.56 = $795,600