uestio #1 (30 Marks) Amherst Metal Works produces two types of metal lamps. Amherst manufactures 20,000 basic lamps and 5,000 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. Amherst allocates setup costs to the twolamps based on setup labour-hours and general manufacturing overhead costs on the basis of directmanufacturing labour-hours. It provides the following budgeted cost information. Direct materials per lamp Direct manufacturing labour-hours per lamp Direct manufacturing labour rate per hour Set up costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs Basic Designer Total $ 8 $ 15 0.5 hours 0.6 hours $ 20 $ 20 114,000 250 50 1 hour 3 hours 130,000 Required:Calculate the total budgeted costs of the basic and designer lamps using Amherst's activity- based costing system. 1. What is the budgeted setup rate per hour? (3 marks) 2. What is the overhead rate for genera manufacturing overhead? (3 marks) 3. Nowcalculate the budgeted direct costs of basic and designer lamps if Amherst allocates overhead costs in each department using activity-based costing. Then complete the indirect allocation of costs for the basic and designer lamps. Lastly, in each case calculate the totals for both types of lamps combined. (24 marks)