Question
The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information: Setups Inspections Assembly (dlh)
The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information:
| Setups | Inspections | Assembly (dlh) | |
| Small Lamps - 3,000 units | 8,000 | 9,000 | 16,000 |
| Desk Lamps - 6,000 units | 16,000 | 15,000 | 12,000 |
| Activity Pool | Activity Base | Budgeted Activity Cost |
| Setups | 24,000 | $60,000 |
| Inspections | 24,000 | $120,000 |
| Assembly (dlh) | 28,000 | $280,000 |
Calculate the overhead per unit to be charged to small lamps.
a. $75.00
b. $17.50
c. $38.33
d. $39.17
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
10th Edition
B010IKDQZM
