(Click the icon to view the information.)
Calculate the total budgeted costs of the basic and designer lamps using Yaleactivity-based costing system.
(Abbreviations used: MOH= Manufacturing Overhead.)
Budgeted setup rate
Budgeted setup costs -: Budgeted setup hours = Bror
Direct materials
Direct manufacturing labor
Total direct costs
Indirect costs of activities
Setup of lamps
General manufacturing overhead
Total indirect costs allocated
Total costs
Basic lamps Designer lamps
Data table
Please explain how to solve for it.
Yale Metal Works produces two types of metal lamps. Yale 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 set up costs and the other for general manufacturing overhead. Yale allocates set up 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: (Click the icon to view the information.)
Calculate the total budgeted costs of the basic and designer lamps using Yalelactivity-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. (Abbreviations used: MOH = Manufacturing Overhead.)
Budgeted setup costs 151,200
Budgeted setup hours 378
Budgeted setup rate 400per setup labor-hour
Now calculate the overhead rate for general manufacturing overhead. (Abbreviations used: MOH = Manufacturing Overhead. Round your answer to six decimal places, $X.XXXXXX.)
Budgeted MOH costs 70,560
Budgeted manufacturing labor hours 10,080 S
Budgeted MOH rate 7 per manufacturing labor-hour
Now calculate the budgeted direct costs of basic and designer lamps if Yale allocates overhead costs in each department using activity-based costing. Then complete the indirect allocation of costs for the basic and designer lamps. (Use the 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.)
Basic lamps Designer lamps Total Per unit Total Per unit Total S 175,000 $ 10.00$ 67,760* $ 11.00$ 242760 210,000 12.00* 92,400* 15.00 302,400 385,000 22.00 160,160 26.0 545,160
X
Data table
Direct materials
Direct manufacturing labor Total direct costs
Basic Lamps Designer Lamps 10 11 0.4 hours 0.5 hours 30 30
Total
Indirect costs of activities
Direct materials per lamp Direct manufacturing labor-hours per lamp Direct manufacturing labor rate per hour Setup costs Lamps produced per batch
Setup of lamps
28,000 00000 77,000 462,000 $
1.60* 123,200 2.80 21,560 4.40 144,760 26.40 $ 304,920 S
20.00 3.50 23.50 49.50s
151,200 70.560 221,760 766,920
General manufacturing overhead
Total indirect costs allocated
151,200
250 1 hour
40 2 hours
Total costs
Setup-hours per batch
General manufacturing overhead costs
70,560
