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Stanford Metal Works produces two types of metal lamps. Stanford manufactures 20,000 basic lamps and 3,300 designer lamps. Its activity-based costing system uses two indirect-cost pools. One cost pool is for set up costs and the other for general manufacturing overhead. Stanford allocates set up costs to the two lamps based on setup labor-hours and general manufacturing overhead costs on the basis of direct manufacturing labor-hours. It provides the following budgeted cost information: Direct materials per lamp Direct manufacturing labor-hours per lamp Direct manufacturing labor rate per hour Setup costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs Caluclation: a) $52,55 b) $55.20 Basic Lamps Designer Lamps $ 5 $ 0.5 hours 30 c) $54.15 d) $57,30 $ 200 1 hour $ 12 0.6 hours 30 30 2 hours S Total $ 162,800 1 5. Calculate the unit cost of the designer lamps using Stanford 's activity-based costing system. (Choose the nearest number to your answer) 76,800

Stanford Metal Works produces two types of metal lamps. Stanford manufactures 20,000 basic lamps and 3,300 designer lamps. Its activity-based costing system uses two indirect-cost pools. One cost pool is for set up costs and the other for general manufacturing overhead. Stanford allocates set up costs to the two lamps based on setup labor-hours and general manufacturing overhead costs on the basis of direct manufacturing labor-hours. It provides the following budgeted cost information: Direct materials per lamp Direct manufacturing labor-hours per lamp Direct manufacturing labor rate per hour Setup costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs Caluclation: a) $52,55 b) $55.20 Basic Lamps Designer Lamps $ 5 $ 0.5 hours 30 c) $54.15 d) $57,30 $ 200 1 hour $ 12 0.6 hours 30 30 2 hours S Total $ 162,800 1 5. Calculate the unit cost of the designer lamps using Stanford 's activity-based costing system. (Choose the nearest number to your answer) 76,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Stanford Metal Works produces two types of metal lamps. Stanford manufactures 20,000 basic lamps and 3,300 designer lamps. Its activity-based costing system uses two indirect-cost pools. One cost pool is for set up costs and the other for general manufacturing overhead. Stanford allocates set up costs to the two lamps based on setup labor-hours and general manufacturing overhead costs on the basis of direct manufacturing labor-hours. It provides the following budgeted cost information: Direct materials per lamp Direct manufacturing labor-hours per lamp Direct manufacturing labor rate per hour Setup costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs Basic Lamps Designer Lamps $ 5 0.5 hours 30 Caluclation: a) $52,55 b) $55.20 c) $54.15 d) $57,30 $ 200 1 hour $ $ 12 0.6 hours 30 30 2 hours Total S 76,800 $ 162,800 5. Calculate the unit cost of the designer lamps using Stanford 's activity-based costing system. (Choose the nearest number to your answer)
Transcribed Image Text:Stanford Metal Works produces two types of metal lamps. Stanford manufactures 20,000 basic lamps and 3,300 designer lamps. Its activity-based costing system uses two indirect-cost pools. One cost pool is for set up costs and the other for general manufacturing overhead. Stanford allocates set up costs to the two lamps based on setup labor-hours and general manufacturing overhead costs on the basis of direct manufacturing labor-hours. It provides the following budgeted cost information: Direct materials per lamp Direct manufacturing labor-hours per lamp Direct manufacturing labor rate per hour Setup costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs Basic Lamps Designer Lamps $ 5 0.5 hours 30 Caluclation: a) $52,55 b) $55.20 c) $54.15 d) $57,30 $ 200 1 hour $ $ 12 0.6 hours 30 30 2 hours Total S 76,800 $ 162,800 5. Calculate the unit cost of the designer lamps using Stanford 's activity-based costing system. (Choose the nearest number to your answer)
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