Benedict Metal Works produces two types of metal lamps. Benedict manufactures $17$ comma $500$ basic lamps and $6$ comma $160$ 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. Benedict 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.

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Calculate the total budgeted costs of the basic and designer lamps using Benedict's activity$-$based costing system.

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Part $1$

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

Part $2$

Now calculate the overhead rate for general manufacturing overhead. $($Abbreviations used: MOH $=$ Manufacturing Overhead. Round your answer to six decimal places, $X$.$XXXXXX$.)$

$/$

$=$

Budgeted MOH rate

$/$

$=$

per manufacturing labour$-$hour

Part $3$

Now calculate the budgeted direct costs of basic and designer lamps if Benedict allocates overhead costs in each department using activity$-$based costing. Then complete the indirect allocation of costs for the basic and designer lamps. Lastly, in each case calculate the totals for both types of lamps combined. $($Use the general manufacturing overhead rate rounded to six decimal places, $X$.$XXXXXX in any calculations. Round the total amounts to the nearest whole dollar and round all per unit amounts to two decimal places.$)$

Basic lamps

Designer lamps

Total

Per unit

Total

Per unit

Total

Direct materials

Direct manufacturing labour

Total direct costs

Part $4$

Indirect costs of activities

Setup of lamps

General manufacturing overhead

Total indirect costs allocated

Total costs

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Information

Basic Lamps

Designer Lamps

Total

Direct materials per lamp

$$12$

$$14$

Direct manufacturing labour$-$hours per lamp

$0\mathrm{.}7$ hours

$0\mathrm{.}9$ hours

Direct manufacturing labour rate per hour

$$30$

$$30$

Setup costs

$$151,200$

Lamps produced per batch

$250$

$40$

Setup$-$hours per batch

$1$ hour

$2$ hours

General manufacturing overhead costs

$$436,002$

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