The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information:   Setups Inspections Assembly (dlh) Small Lamps - 5,000 units 4,000 9,300 43,600 Desk Lamps - 8,300 units 8,000 15,500 43,600   Activity Pool Activity Base Budgeted Amount Setups 12,000 $128,400 Inspections 24,800 $153,760 Assembly (dlh) 76,300 $366,240 Calculate the overhead per unit to be charged to small lamps.

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8EB: Rocks Industries has identified three different activities as cost drivers: machine setups, machine...
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The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information:

  Setups Inspections Assembly (dlh)
Small Lamps - 5,000 units 4,000 9,300 43,600
Desk Lamps - 8,300 units 8,000 15,500 43,600

 

Activity Pool Activity Base Budgeted Amount
Setups 12,000 $128,400
Inspections 24,800 $153,760
Assembly (dlh) 76,300 $366,240

Calculate the overhead per unit to be charged to small lamps.

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