Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Line Item Description Units Setups Inspections Assembly (dlh) Small table lamps 4,000   3,500   9,450   45,600     Desk lamps 8,100   7,000   15,750   45,600     Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,500                 $95,550             Inspections 25,200                 168,840             Assembly (dlh) 79,800                 255,360             The total factory overhead to be allocated to desk lamps is a. $315,145 b. $409,689 c. $567,261 d. $189,087

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information:

Line Item Description Units Setups Inspections Assembly (dlh)
Small table lamps 4,000   3,500   9,450   45,600    
Desk lamps 8,100   7,000   15,750   45,600    

Activity Total Activity-Base Usage Budgeted Activity Cost
Setups 10,500                 $95,550            
Inspections 25,200                 168,840            
Assembly (dlh) 79,800                 255,360            

The total factory overhead to be allocated to desk lamps is

a. $315,145
b. $409,689
c. $567,261
d. $189,087
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