Stanford Metal Works produces two types of metal lamps. Stanford manufactures 17,500 basic lamps and 6,160...

Transcribed Image Text:

Stanford Metal Works produces two types of metal lamps. Stanford manufactures 17,500 basic lamps and 6,160 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. Stanford allocates setup costs to the two lamps based on setup labour-hours and general manufacturing overhead costs on the basis of direct manufacturing labour-hours. It provides the following budgeted cost information. (Click the icon to view the information.) Calculate the total budgeted costs of the basic and designer lamps using Stanford's activity-based costing system. r general manufacturing overhead rate rounded to six decimal places, $X.XXXXXX in any calculations. Round the total amounts to the nearest whole dollar and round all per unit amounts to two decimal places.) Designer lamps Basic lamps Total Per unit Total Per unit Total Direct materials $ 227,500 $ 13.00 $ 98,560 $ 16.00 $ 326,060 Direct manufacturing labour 140,000 8.00 110,880 18.00 250,880 Total direct costs 367,500 21.00 209,440 34.00 576,940 Indirect costs of activities Setup of lamps 47.250 General manufacturing overhead 62,625 109,875 Total indirect costs allocated 447,375 Total costs Stanford Metal Works produces two types of metal lamps. Stanford manufactures 17,500 basic lamps and 6,160 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. Stanford allocates setup costs to the two lamps based on setup labour-hours and general manufacturing overhead costs on the basis of direct manufacturing labour-hours. It provides the following budgeted cost information. (Click the icon to view the information.) Calculate the total budgeted costs of the basic and designer lamps using Stanford's activity-based costing system. r general manufacturing overhead rate rounded to six decimal places, $X.XXXXXX in any calculations. Round the total amounts to the nearest whole dollar and round all per unit amounts to two decimal places.) Designer lamps Basic lamps Total Per unit Total Per unit Total Direct materials $ 227,500 $ 13.00 $ 98,560 $ 16.00 $ 326,060 Direct manufacturing labour 140,000 8.00 110,880 18.00 250,880 Total direct costs 367,500 21.00 209,440 34.00 576,940 Indirect costs of activities Setup of lamps 47.250 General manufacturing overhead 62,625 109,875 Total indirect costs allocated 447,375 Total costs

Answer rating: 100% (QA)

Answer To calculate the total budgeted costs of the basic and designer lamps using Stanfords activit... View the full answer