Georgetown Metal Works produces two types of metal lamps. Georgetown manufactures 17,500 basic lamps and 6,160 designer lamps. Its activity-based costing system uses two indirect-c pools. One cost pool is for setup costs and the other for general manufacturing overhead. Georgetown allocates setup costs to the two lamps based on setup labour-hours and general manu overhead costs on the basis of direct manufacturing labour-hours. It provides the following budgeted cost information. (Click the icon to view the information.) Calculate the total budgeted costs of the basic and designer lamps using Georgetown'activity-based costing system. Begin by calculating the overhead rates for each of the two indirect-cost pools: setup costs and general manufacturing overhead. First select the formula; then enter the applicable amounts a calculate the rate. Begin with the overhead rate for set up costs. (Round the budgeted rate to the nearest dollar. Abbreviations used: MOH = Manufacturing Overhead.) Budgeted setup rate per setup labour-hour Information Direct materials per lamp Direct manufacturing labour-hours per lamp Direct manufacturing labour rate per hour Setup costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs $ 8 Basic Lamps Designer Lamps $ 14 Total 0.4 hours 0.5 hours $ 30 $ 30 $ 151,200 250 1 hour 40 2 hours $ 50,400 Print Done
Georgetown Metal Works produces two types of metal lamps. Georgetown manufactures 17,500 basic lamps and 6,160 designer lamps. Its activity-based costing system uses two indirect-c pools. One cost pool is for setup costs and the other for general manufacturing overhead. Georgetown allocates setup costs to the two lamps based on setup labour-hours and general manu overhead costs on the basis of direct manufacturing labour-hours. It provides the following budgeted cost information. (Click the icon to view the information.) Calculate the total budgeted costs of the basic and designer lamps using Georgetown'activity-based costing system. Begin by calculating the overhead rates for each of the two indirect-cost pools: setup costs and general manufacturing overhead. First select the formula; then enter the applicable amounts a calculate the rate. Begin with the overhead rate for set up costs. (Round the budgeted rate to the nearest dollar. Abbreviations used: MOH = Manufacturing Overhead.) Budgeted setup rate per setup labour-hour Information Direct materials per lamp Direct manufacturing labour-hours per lamp Direct manufacturing labour rate per hour Setup costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs $ 8 Basic Lamps Designer Lamps $ 14 Total 0.4 hours 0.5 hours $ 30 $ 30 $ 151,200 250 1 hour 40 2 hours $ 50,400 Print Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Georgetown Metal Works produces two types of metal lamps. Georgetown manufactures 17,500 basic lamps and 6,160 designer lamps. Its activity-based costing system uses two indirect-cost
pools. One cost pool is for setup costs and the other for general manufacturing overhead. Georgetown allocates setup costs to the two lamps based on setup labour-hours and general manufacturing
overhead costs on the basis of direct manufacturing labour-hours. It provides the following budgeted cost information.
(Click the icon to view the information.)
Calculate the total budgeted costs of the basic and designer lamps using Georgetown' activity-based costing system.
Begin by calculating the overhead rates for each of the two indirect-cost pools: setup costs and general manufacturing overhead. First select the formula; then enter the applicable amounts and
calculate the rate. Begin with the overhead rate for set up costs. (Round the budgeted rate to the nearest dollar. Abbreviations used: MOH = Manufacturing Overhead.)
Budgeted setup rate
per setup labour-hour
Information
Direct materials per lamp
Direct manufacturing labour-hours per lamp
Direct manufacturing labour rate per hour
Setup costs
Lamps produced per batch
Setup-hours per batch
General manufacturing overhead costs
Basic Lamps Designer Lamps
$ 8
Total
$
14
0.4 hours
0.5 hours
$ 30 $ 30
$
151,200
250
40
1 hour
2 hours
$ 50,400
Print
Done
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