During the most recent accounting period TLC made 8,400 units of its small tiffany style lamps. Making the lamps required 2,300 labor hours, 64 setups, and consumed 10% of the product-level costs. If the Company uses direct labor hours as the single company wide cost driver, the amount of overhead cost allocated to the tiffany lamps is Multiple Choice $8,700. $45,540. $22,700. $36,618.

Incomplete Question

Below, is the missing part of the incomplete question.

Please note that the data in the missing part of the question may differ from your question

But I'll solve this question based on general terms.

You'll arrive at your answer if you apply the same logic to yours.

Missing Part of the Question

These data represent total costs for all types of lamps produced by the Company.

Activity Center Unit-level --- Batch-level --- Product-level --- Facility-level

Overhead Cost $60,000 $24,000 $12,000 $72,000

Cost Driver 10,000 labor hrs 480 setup % of use 72,000 units

Allocation Rate. $6 per labor hr. $ 50 per setup $ 1 per unit

Total Allocation Overhead = $38,640

Explanation:

Given.

Labour hours = 2,300

To calculate the total allocated overhead,

First we'll calculate the allocation rate.

Allocation Rate is calculated by: Cost to be allocated / Allocation base

Where Cost to be allocated= $60,000 + $24,000 + $12,000 + $72,000

Cost to be allocated = $168,000

Allocation Base = Cost Driver at unit level = 10,000 labour hours.

So, Allocation Rate = $168,000/10,000

Allocation Rate = $16.8 per hour

Now, to get the Total allocated overhead;

It is calculated by

Allocation rate * Weight of the base

Where Allocation Rate = $16.8 per hour

Weight of the base = 2,300 labour hours Given

Total Allocated Overhead = 2300 labour hours * $16.8

Total Allocated Overhead = $38,640

the correct answer for apex is “ doubling a recipe and figuring out how many cups of paint to use are both examples of using math skills”.