Solution to the $23,400$

Setup of lamps

$23,400$

$1\mathrm{.}20$

General manufacturing overhead

$100,635$

$5\mathrm{.}16$

Total indirect costs allocated

$124,035$

$6\mathrm{.}36$

Total costs

Harvard Metal Works produces two types of metal lamps. Harvard manufactures $19$ comma $500$ basic lamps and $6$ comma $450$ 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. Harvard 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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Basic Lamps

Designer Lamps

Total

Direct materials per lamp

$$6$

$$11$

Direct manufacturing labour$-$hours per lamp

$0\mathrm{.}6$ hours

$0\mathrm{.}7$ hours

Direct manufacturing labour rate per hour

$$20$

$$20$

Setup costs

$$152,400$

Lamps produced per batch

$250$

$30$

Setup$-$hours per batch

$1$ hour

$2$ hours

General manufacturing overhead costs

$$139,470$

Calculate the total budgeted costs of the basic and designer lamps using Harvard$\text{'}$s $$activity$-$based costing system.