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 - 4,400 units | 4,000 | 8,850 | 42,800 |
Desk Lamps - 8,100 units | 8,000 | 14,750 | 42,800 |
Activity Pool | Activity Base | Budgeted Amount |
Setups | 12,000 | $100,800 |
Inspections | 23,600 | $120,360 |
Assembly (dlh) | 74,900 | $232,190 |
Calculate the overhead per unit to be charged to small lamps.
a.$67.27
b.$81.69
c.$48.05
d.$28.83
The correct answer is c. $ 48.05
Activity Pool | Activity Base | Budgeted Amount | Activity Rate ( Budgeted Amount / Base) | |
Setups | 12,000.00 | 1,00,800.00 | 8.40 | |
Inspections | 23,600.00 | 1,20,360.00 | 5.10 | |
Assembly (dlh) | 74,900.00 | 2,32,190.00 | 3.10 | |
Setups | Inspections | Assembly (dlh) | Total | |
Activity | 4,000.00 | 8,850.00 | 42,800.00 | |
Activity Rate | 8.40 | 5.10 | 3.10 | |
overhead ( Activity * Activity Rate) | 33,600.00 | 45,135.00 | 1,32,680.00 | 2,11,415.00 |
Units | 4,400.00 | |||
overhead per unit ( Overhead / Units) | 48.05 |
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