During the last fiscal year ended December 31, 2021, Kapahulu reported the following information in connection with the production of this table lamp:
1. Actual VOH incurred: $494,000
2. Actual FOH incurred: $344,000
3. Production: 100,000 units
4. Direct material purchases: 210,000 kg at $3.05/kg
5. Beginning inventory of direct material: 18,000 kg (carried at standard cost).
6. Total direct labour used: 71,000 hours, at a cost of $923,000
No ending inventory
The companys factory can produce 120,000 table lamps a year but a denominator level was set at 90,000 units for the year ended December 31, 2022. Cost driver is direct labour hours.
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