Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Units Setups Inspections Assembly (dlh) Small table lamps 3,400 3,600 Desk lamps 8,800 7,200 8,400 14,000 43,200 43,200 Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,800 $109,080 Inspections 22,400 114,240 Assembly (dlh) 75,600 340,200 The total factory overhead (rounded to the nearest cent) to be allocated to each unit of small table lamps is O a. $80.47 Ob. $136.80 O c. $48.28 O d. $104.61
Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Units Setups Inspections Assembly (dlh) Small table lamps 3,400 3,600 Desk lamps 8,800 7,200 8,400 14,000 43,200 43,200 Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,800 $109,080 Inspections 22,400 114,240 Assembly (dlh) 75,600 340,200 The total factory overhead (rounded to the nearest cent) to be allocated to each unit of small table lamps is O a. $80.47 Ob. $136.80 O c. $48.28 O d. $104.61
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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
Transcribed Image Text:Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information:
Units Setups Inspections Assembly (dlh)
3,400 3,600
8,800 7,200
Small table lamps
Desk lamps
8,400
14,000
43,200
43,200
Total Activity-Base Usage Budgeted Activity Cost
10,800
$109,080
22,400
114,240
75,600
340,200
Activity
Setups
Inspections
Assembly (dlh)
The total factory overhead (rounded to the nearest cent) to be allocated to each unit of small table lamps is
O a. $80.47
O b. $136.80
O c. $48.28
O d. $104.61
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