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Valhalla Company manufactures small table lamps and desk lamps. The following shows the activities per product:...

Valhalla Company manufactures small table lamps and desk lamps. The following shows the activities per product: Units Setups Inspections Assembly (dlh) Small table lamps 8,000 10,000 32,000 8,000 Desk lamps 16,000 30,000 14,000 46,000 Use the following information prepared by Valhalla Company. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 40,000 $160,000 Inspections 46,000 230,000 Assembly (dlh) 54,000 324,000 a. Determine the activity rates for each activity. Setups $ per setup Inspections $ per inspection Assembly $ per DLH b. Determine the activity-based factory overhead per unit for each product. Round your answers to two decimal places, if necessary. Small table lamp $

Desk Lamp $

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Answer #1
Activity Total Cost Cost Activity rate
drivers
Setup 160000 40000 4 per setup
Inspection 230000 46000 5 per inspection
Assembly 324000 54000 6 per DLH
Activity Cost allocated
Activity    Rate Small Lamp DeskLamp
Driver OH cost Driver OH cost
Setup 4 10000 40,000 30000 120000
Inspection 5 32000 160000 14000 70000
Assembly 6 8000 48000 46000 276000
Total Overheads 248000 466000
Divide: Units 8000 16000
factory overheads per unit 31 29.13
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