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The Lamp Company (TLC) produces a varlety of lamps in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost
The Lamp Company (TLC) produces a varlety 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 $133,000 19,000 labor hrs $ 7 per labor hr Batch-level $72, 240 840 setup $ 86 per setup Product-level $ 21,888 % of use Facility-level $73, 800 73,800 units $ 1 per unit During the most recent accounting period TLC made 8.600 units of its small tiffany style lamps. Making the lamps required 2.400 labor hours, 66 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 Multiple Choice o $9.000 $37.896. $23,300 $29,994
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