The Lamp Company (TLC) produces a variety of lamps in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost centers are given below. These data represent total costs for all types of lamps produced by the Company. (Round intermediate calculation to 2 decimal places.) Activity Center Overhead Cost Cost Driver Allocation Rate Unit-level $112,eee 16,eee labor hrs 7 per labor hr Batch-level $53,280 720 setup $ 74 per setup Product-level $ 18,000 % of use Facility-level $73, 2ee 73,200 units $ 1 per unit During the most recent accounting period TLC made 7400 units of its small tiffany style lamps. Making the lamps required 1,800 labor hours, 54 setups, and consumed 20% of the product level costs. If the Company uses direct labor hours as the single company wide cost driver, the amount of overhead cost allocated to the tiffany lampsis Westmorland makes ink that it uses in ballpoint pens. The Company produces two colors of ink. One is blue the other is red. Ink is made in batches with setup costs being 54.200 per batch. Demand for blue ink is significantly stronger than for red ink. During the most recent week, the company made 2 batches of ink, one blue the other red. It requires 1 hour of labor to make a gallon of ink regardless of color. There were 800 hours of labor used to make the blue Ink and the 600 hours of labor used to make the red ink. If the Company uses activity-based costing and allocates the setup cost on the basis of the number of batches, the setup cost allocated to the Multiple Choice The Lamp Company (TLC) produces a variety of lamps in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost centers are given below. These data represent total costs for all types of lamps produced by the Company. Activity Center Overhead Cost Cost Driver Allocation Rate Unit-level $60,000 10,000 labor hrs $ 6 per labor hr Product-level $ 12,000 Batch-level $24, eee 488 setup $ 50 per setup % of use Facility-level $72,eee 72,000 units $ 1 per unit During the most recent accounting period TLC made 5,000 units of its small tiffany style lamps. Making the lamps required 600 labor hours, 30 setups, and consumed 20% of the product-level costs. If the Company uses direct labor hours as the single company wide cost driver, the amount of overhead cost allocated to the tiffany lamps is The Lamp Company (TLC) produces a variety of lamps in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost centers are given below. These data represent total costs for all types of lamps produced by the Company Activity Center Unit-level Batch-level Product-level Facility-level Overhead Cost $60,000 $24,000 $ 12,000 $72, eee Cost Driver 10,000 labor hrs 480 setup % of use 72, eee units Allocation Rate 6 per labor hr $ 50 per setup $ 1 per unit During the most recent accounting period TLC made 5,000 units of its tiffany type lamps. Making the lamps required 600 labor hours, 30 setups, and consumed 20% of the product-level costs. If the Company uses activity based costing, the amount of overhead cost allocated to the tiffany lamps is
