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:

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