Business, 15.04.2021 16:30 ameera1973

Ratchford Clocks manufactures alarm clocks and wall clocks and allocates overhead based on direct labor hours. The production process is set up in three departments: Assembly, Finishing, and Calibrating. The following is information regarding the direct labor used to produce one unit of the two clocks: Per-Unit Hours Assembly Finishing Calibrating Alarm clocks 3 1 1 Wall clocks 2 3 2 Total direct labor hours 5 4 3 Factory overhead is budgeted for the year as follows: Assembly Department $595,000 Finishing Department 200,000 Calibrating Department 140,000 Total factory overhead $935,000 Ratchford Clocks is planning to manufacture 50,000 alarm clocks and 10,000 wall clocks during the year. a. Determine the total number of direct labor hours that will be needed by each department.

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