Amherst Metal Works produces two types of metal lamps. Amherst manufactures 20, 000 basic lamps...
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Amherst Metal Works produces two types of metal lamps. Amherst manufactures 20, 000 basic lamps and 5, 000 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. Amherst allocates setup 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. Calculate the total budgeted costs of the basic and designer lamps using Amherst's activity-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 rate ________/___________ = _________per setup labor-hour
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