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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

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3E: Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and...
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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
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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