Amherst Metal Works produces two types of metal lamps. Amherst manufactures 20,000 basic lamps and 5,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 set up costs and the other for general manufacturing overhead. Amherst allocates setup costs to the two lamps based on setup labor-hours and general manufacturing overhead costs on the basis of direct manufacturing labor-hours. It provides the following budgeted cost information: Calculate the total budgeted costs of the basic and designer lamps using Amherst's activity-based costing system. Begin by calculating the overhead rates for each of the two indirect-cost pools; set up costs and general manufacturing overhead. First select the formula, then enter the applicable amounts and calculate the rate. Begin with the overhead rate for set up costs. Total Basic Lamps Designer Lamps 15 Direct materials per lamp Direct manufacturing labor-hours per lamp Direct manufacturing labor rate per hour Setup costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs 0.5 hours 0.6 hours 20 20 114,000 250 50 1 hour 3 hours 120,000 50 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 set up costs and the other for general manufacturing overhead. Amherst allocates setup costs to the two lamps based on setup labor-hours and general manufacturing overhead costs on the basis of direct manufacturing labor-hours. It provides the following budgeted cost information: Calculate the total budgeted costs of the basic and designer lamps using Amherst's activity-based costing system. Begin by calculating the overhead rates for each of the two indirect-cost pools; set up costs and general manufacturing overhead. First select the formula, then enter the applicable amounts and calculate the rate. Begin with the overhead rate for set up costs. Total Basic Lamps Designer Lamps 15 Direct materials per lamp Direct manufacturing labor-hours per lamp Direct manufacturing labor rate per hour Setup costs Lamps produced per batch Setup-hours per batch General manufacturing overhead costs 0.5 hours 0.6 hours 20 20 114,000 250 50 1 hour 3 hours 120,000 50
Expert Answer:
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
Posted Date:
Students also viewed these accounting questions
-
Amherst Metal Works produces two types of metal lamps. Amherst manufactures 24,640 basic lamps and 6,250 designer lamps. Its simple costing system uses a single indirect-cost pool and allocates costs...
-
The Central City Manufacturing Company produces two types of toy model cars, the Stanley Steamer and the Model T. Three machines are required to produce each type; these machines are classified as X,...
-
The Wellbuilt Company produces two types of wood chippers, economy and deluxe. The deluxe model requires 3 hours to assemble and 12 hour to paint, and the economy model requires 2 hours to assemble...
-
The pilot of a small boat charts a course such that the boat will always be equidistant from an upcoming rock and the shoreline. Describe the path of the boat. If the rock is 2 miles offshore, write...
-
Trace the path of blood into and out of the kidney. Why is the kidney so highly vascularized?
-
What is the difference between recycling and lateral cycling?
-
Identify the most appropriate approach and then design. Provide a rationale as to why this approach and design would be most appropriate. Develop a hypothetical research scenario that would...
-
The contribution margin income statement of Delectable Donuts for August 2012 follows: Delectable sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for...
-
A student performs a double-slit experiment using two slits spaced 0.20 mm apart and located 1.50 m from the screen. The monochromatic light source creates an interference pattern in which the...
-
Part I of this case, presented in Chapter 3, discussed the situation of D'Leon Inc., a regional snack foods producer, after an expansion program. D'Leon had increased plant capacity and undertaken a...
-
Create a program Arrays with an array containing 100 random integers from 1-100. Use a for loop to generate and store random numbers in the array. Use the Secure Random class to generate the random...
-
Both AABC and AAPQ are equilateral, and P is the midpoint of BC. Prove that AC and PQ are perpendicular. B AABC is right-angled at B, point D A is the foot of the altitude from B to AC, and AB = AE....
-
(a) (b) Prove that log, 5 is irrational Suppose that a and b are real numbers where b# 0 Consider the polynomial P(z)=z + az + b The polynomial has a double root at z = a (i) Show that P'(z) is an...
-
$1500 is invested in an account that accrues 2% interest. How many years will it take for the account balance to reach $5000?
-
If ABC Co. has $13.3250 million in operating expenses and $5.2898 million in depreciation expense, how much of their expenses were cash? Enter your answer in millions with four decimal places
-
Revisit our Week One reading Courts 101: Understanding the Court System This week's discussion will help you to place violations and penalties within a specific law and legal system. HCO and/or...
-
What exactly is a prima facie duty? How does an ethic of prima facie duties differ from monistic and absolutist ethical theories?
-
Blade Runner produces regular scooters and motorized scooters. Blade Runner scooters are considered the most reliable in the marketplace. Demand has been volatile, with huge increases in demand...
-
The Paint Palette Company produces two products, premium paint and regular paint, by a joint process. Joint costs amount to $10,000 per batch of output. Each batch totals 1,000 gallons, 30% premium...
-
List several ways that variances can be used to improve future operations.
-
Beginning in the 1920s, Russian physicist Pyotr Kapitza or Kapitsa (18941984, Nobel laureate in physics 1978) measured the Paschen-Back effect to an accuracy of 1 percent to 3 percent in various...
-
Consider transitions from a \({ }^{2} D\) state to a \(2 P\) state in the strong field PaschenBack regime. List all allowed transitions and show that there are only three different spectral lines.
-
What is the longest wavelength of the Paschen series spectrum? Would it be visible to the human eye?
Study smarter with the SolutionInn App