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Georgetown Metal Works produces two types of metal lamps Georgetown manufactures 19,500 basic lamps and 6,450 designer lamps. Its activity-based costing system uses two indirect-cost
Georgetown Metal Works produces two types of metal lamps Georgetown manufactures 19,500 basic lamps and 6,450 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 Georgetown 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 (Click the icon to view the information.) Calculate the total budgeted costs of the basic and designer lamps using Georgetown's activity-based costing system Begin by calculating the overhead rates for each of the two indirect-cost pools, set up 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 (Abbreviations used MOH Manufacturing Overhead.) Budgeted setup rate per setup labor-hour 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 $ 6 $ 18 0.6 hours 0.7 hours $ 20 $ 20 20 S Total 152,400 250 90 30 1 hour 2 hours 139,470
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