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how to do this ! 5-2 Amherst Metal Works produces two types of metal lamps. Amherst manufactures 20,000 basic lamps and 5,000 designer lamps. Its
how to do this ! 5-2 Amherst Metal Works produces two types of metal lamps. Amherst manufactures 20,000 basic lamps and 5,000 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. Amherst allocates setup costs to the two lamps based on setup labor-hours and general manufacturing overhead costs on the basis of direct manu- facturing labor-hours. It provides the following budgeted cost information: Total Basic Lamps $9 0.5 hours S20 Designer Lamps $15 0.6 hours $20 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 $114,000 250 1 hour 50 3 hours $120,000 Calculate the total budgeted costs of the basic and designer lamps using Amherst's activity- based costing system
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