Jimenez Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2017. Machine setup-hours is the only driver of manufacturing overhead costs. Jimenez has a setup capacity of 1,100 hours

Calculate the manufacturing overhead costs budget (label it Schedule 5).

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1. Quantity of lamps to be produced 2. Number of lamps to be produced per batch 3. Setup time per batch 20,000 lamps Knox 100 lamps/batch 3 hours/batch Variable cost $60 per setup-hour Fixed cost $77,000 10,000 lamps Ayer 80 lamps/batch 4 hours/batch