The total factory overhead for Big Light Company is budgeted for the year at $807,500. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 60,000 units. Each night light requires 1/2 hour of direct labor. Desk lamps are budgeted for 80,000 units. Each desk lamp requires 2 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. fill in the blank 1 direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. $fill in the blank 2 per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night Lights $fill in the blank 3 per unit Desk Lamps $fill in the blank 4 per unit

Explanation:

Given that :

A business issued a 180-day, 8% note for $52,000 to a creditor on account.

Illustrate the effects on the accounts and financial statements of recording

(a) the issuance of the note and;

(b) the payment of the note at maturity, including interest.

(a)

We need to prepare the Note Payable and Balance sheet Entries in order to illustrate   the effects on the accounts and financial statements of recording the issuance of the note:

SO;

NOTE PAYABLE

Account Payable                  52000

Note Payable                                              52000

                               BALANCE SHEET

Access  =              Liabilities  +                     Stockholders      Income

                                                                     ' Equity                 Statement

No effect        Account Payable -52000    No effect             No effect

                       Notes Payable + 52000

                      NET EFFECT        = 0

(b)

Illustrate the effects on the accounts and financial statements of recording of the payment of the note at maturity, including interest.

NOTES PAYABLE

Account Payable                  52000

Interest expense                     2080

(52000×8%× 180/360)

Cash                                                                54080

                               BALANCE SHEET

Access  =              Liabilities  +                     Stockholders      Income

                                                                     ' Equity                 Statement

Cash = 54080   Notes Payable           Retained Earnings   Interest expense                    

                           =52000                     = 2080                      =2080