Question Content AreaDawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: UnitsSetupsInspectionsAssembly (dlh)Small table lamps3,000 8,000 9,000 16,000 Desk lamps6,000 16,000 15,000 12,000 ActivityTotal Activity-Base UsageBudgeted Activity CostSetups24,000 $60,000 Inspections24,000 120,000 Assembly (dlh)28,000 280,000 The total factory overhead to be allocated to desk lamps isa.$235,000b.$230,000c.$306,667d.$225,000

It is mentioned to calculate the total factory overhead to be allocated to the desk lamps. Thus, it…

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information:

	Units	Setups	Inspections	Assembly (dlh)
Small table lamps	3,000	8,000	9,000	16,000
Desk lamps	6,000	16,000	15,000	12,000

Activity	Total Activity-Base Usage	Budgeted Activity Cost
Setups	24,000	$60,000
Inspections	24,000	120,000
Assembly (dlh)	28,000	280,000

The total factory overhead to be allocated to desk lamps is

a.$235,000

b.$230,000

c.$306,667

d.$225,000

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