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The Valhalla Company manufactures small lamps and desk lamps. The following show

ID: 2367519 • Letter: T

Question

The Valhalla Company manufactures small lamps and desk lamps. The following shows the activities per product: Set-ups Inspections Assembly (DLH) Small Lamps - 8,000 units 10,000 32,000 8,000 Desk Lamps - 16,000 units 30,000 14,000 46,000 Using the following information prepared by the Valhalla Company, determine (a) the activity rates for each activity and (b) the activity based factory overhead per unit for each product. Activity Pool Activity Base Budgeted Amount Set-ups 40,000 $160,000 Inspections 46,000 $230,000 Assembly (DLH) 54,000 $324,000

Explanation / Answer


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Per unit small 32000 40000 48000 desk 64000 80000 96000
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