The Bonnington Company manufactures small lamps and desk lamps. The following shows the activities per product: Using the following information prepared by the Bonnington Company, determine the total factory overhead to be charged to small lamps.

Question

The Bonnington Company manufactures small lamps and desk lamps. The following shows the activities per product:  Using the following information prepared by the Bonnington Company, determine the total factory overhead to be charged to small lamps.

Quizplus · Accepted Answer

To determine the factory overhead to be charged to small lamps, we need to add up the overhead costs that are specifically related to the production of small lamps. These include:

- Direct labor: $500,000 x 25% = $125,000
- Machine setups: $200,000 x 50% x 25% = $25,000
- Materials handling: $100,000 x 40% x 25% = $10,000
- Quality control: $300,000 x 30% x 25% = $22,500

Total factory overhead for small lamps = $125,000 + $25,000 + $10,000 + $22,500 = $182,500

Therefore, the best choice is C.

The Bonnington Company Manufactures Small Lamps and Desk Lamps