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Metal Works produces two types of metal lamps. Syracuse manufactures 17,500 basic lamps and 6,160 designer lamps. Its? activity-based costing system uses two? indirect-cost pools.
Metal Works produces two types of metal lamps. Syracuse 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 set up costs and the other for general manufacturing overhead.
Syracuse 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:
Basic Lamps Designer Lamps Total Direct mate rials per lamp 5 E E 1? Direct manufacturing laborhours per lamp 11-4 hours [1.5 hours Direct manufacturing labor rate per hour 95 3!] $ 30 Setup costs $ 15112111] Lamps produced per hatch 25!] 4E] Setuphours per batch 1 hour 2 hours General manufacturing overhead costs $ 311.240Step by Step Solution
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