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Business, 15.10.2020 09:01 azariahbelfield

The Nite Lite Company manufactures small lamps and desk lamps. The following shows the activities per product: Set-ups Inspections Assembly (DLH)
Small Lamps - 4,000 units 4,000 16,000 4,000
Desk Lamps - 8,000 units 16,000 8,000 24,000

Using the following information prepared by the Nite Lite Company, determine the total factory overhead rate to be charged to desk lamps.

Activity Pool Activity Base Budgeted Amount
Set-ups 20,000 $60,000
Inspections 24,000 $120,000
Assembly (DLH) 28,000 $420,000

a. $380,000
b. $184,000
c. $152,000
d. $448,000

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