Problem
The Kaumajet Factory produces two products - table lamps and desk lamps. It has two separate departments - finishing and production. The overhead budget for the finishing department is $380,999, using 274,100 direct labor hours. The overhead budget for the production department is $415,767 using 87,900 direct labor hours.
If the budget estimates that a table lamp will require 2 hours of finishing and 5hours of production, what is the total amount of factory overhead to be allocated to table lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours, if 12,000 units are produced?