The Dawson Company Manufactures Small Lamps and Desk Lamps

question 12

Multiple Choice

The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information: $\begin{array}{|l|r|c|c|}\hline & \text { Setups } & \text { Insp ections } & \text { Assembly dlh) } \\\hline \text { Small Lamps-3,000 units } & 8,000 & 9,000 & 16,000 \\\hline \text { Desk Lamps-6,000 units } & 16,000 & 15,000 & 12,000 \\\hline & & & \\\hline\end{array}$ $\begin{array}{|l|c|c|}\hline \text { Activity Pool } & \text { Activity Base } & \text { Budgeted Amount } \\\hline \text { Setups } & 24,000 & \$ 60,000 \\\hline \text { Inspections } & 24,000 & \$ 120,000 \\\hline \text { Assembly dlh) } & 28,000 & \$ 280,000 \\\hline\end{array}$
-The Bonnington Company manufactures small lamps and desk lamps. The following shows the activities per product: $$\begin{array} { | l | r | c | c | } \hline & & & \\& \text { Setups } & \text { Inspections } & \text { Assembly dlh) } \\\hline \text { Small Lamps-4,000 units } & 4,000 & 15,000 & 6,000 \\\hline \text { Desk Lamps-8,000 units } & 16,000 & 7,000 & 20,000 \\\hline\end{array}$$ Using the following information prepared by the Bonnington Company, determine the total factory overhead to be charged to small lamps. $$\begin{array} { | l | c | c | } \hline \text { Activity Pool } & \text { Activity Base } & \text { Budgeted Amount } \\\hline \text { Setups } & 20,000 & \$ 80,000 \\\hline \text { Inspections } & 22,000 & \$ 132,000 \\\hline \text { Assembly d1h) } & 26,000 & \$ 416,000 \\\hline\end{array}$$

• A) $314,000
• B) $209,333
• C) $202,000
• D) $104,000

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Definitions:

Saturation Level

Saturation level refers to the maximum extent to which something can be absorbed or filled, commonly used in contexts like color intensity in images or the concentration of a solution.

Brightness Contrast

The effect of surrounding brightness levels on the perception of the brightness of an object, where the same object may appear different under different lighting conditions.

Lightness Constancy

The ability to perceive the color (or lightness) of an object as constant under varying lighting conditions.

Brightest

Having the most light or luminosity; often used metaphorically to describe highly intelligent or clever individuals.