Question

The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product...

The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information:

Setups Inspections Assembly (dlh)
Small Lamps - 4,300 units 3,900 8,550 41,200
Desk Lamps - 10,600 units 7,800 14,250 41,200
Activity Pool Activity Base Budgeted Amount
Setups 11,700 $111,150
Inspections 22,800 $152,760
Assembly (dlh) 72,100 $295,610

Calculate the total factory overhead to be charged to desk lamps.

a.$338,495

b.$406,194

c.$236,946

d.$575,442

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Answer #1
Activity pool Activity Base (A) Budgeted amount (B) Overhead rate (B) / (A)
Setup 11,700 $111,150 $9.5
Inspection 22,800 $152,760 $6.7
Assembly (dlh) 72,100 $295,610 $4.1

Total factory overhead to be charged to desk lamps:

Setup 7,800 $9.5 $74,100
Inspection 14,250 $6.7 $95,475
Assembly 41,200 $4.1 $168,920
$338,495

Option a. $338,495

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