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Vanderbilt Metal Works produces two types of metal lamps. Vanderbilt manufactures 24,640 basic lamps and 6,250 designer lamps. Its activity-based costing system uses 5-2 two
Vanderbilt Metal Works produces two types of metal lamps. Vanderbilt manufactures 24,640 basic lamps and 6,250 designer lamps. Its activity-based costing system uses 5-2 two indirect-cost pools. One cost pool is for setup costs and the other for general manufacturing overhead. Vanderbilt allocates setup costs to the two lamps based on setup labor-hours and general manufacturing overhead costs on the basis of direct manu- facturing labor-hours. It provides the following budgeted cost information: Basic Lamps Designer Lamps Total Direct materials per lamp $ 5 $19 Direct manufacturing labor-hours per lamp 0.4 hours 0.5 hours Direct manufacturing labor rate per hour $30 $30 Setup costs $130,800 Lamps produced per batch 320 50 Setup-hours per batch 1 hour 2 hours $ 89,877 General manufacturing overhead costs Calculate the total budgeted costs of the basic and designer lamps using Vanderbilt's activity-based costing system
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