What was the montrly expected production of customized lamps that was used to de

Question

What was the montrly expected production of customized lamps that was used to determine whether he standard fixed overhead rate?
Thats all the info i have HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW s Cut Arial Copy Paste f Format Painter | B 1 u.E.2. A. f €Merge & Center Clipboard Font Alignment F60 15 16 17 18 Special order lamps are manufactured in division S. Because of the precise nature of the process a 25 standard cost system has been developed. The following standards are used for the special orders: 26 27 28 29 36 37 38 39 40 47 48 49 50 To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries 51 are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) 58 while entries are made to the accounting system at standard. Variance analysis is used to analyze the 59 differences. 60 61 Standards Figurines Electrical Sets Lamp Shade Direct Labor Variable Overhead Fixed Overhead $9.500000 per lamp 300000 per lamp per lamp 2.400000 per lamp (4 lamps/hr.) per lamp (4 lamps/hr.) per lamp Total Fixed overhead is based on expected production of #### customized lamps each month. 62 69 Job Order Costing Section 70 71 On January 1, 20x2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The 72 job called for 4,000 customized lamps. The following set of transactions occurred from 73 January 5 until the job was completed .. 7 8 9 10 11 12 13 1415 16 17 18 19 READY

Explanation / Answer

Budgeted Standard Cost = $40280.48

Given that $ 240.96 is unfavorable variance due to volume, so $40039.52 ($40280.48-240.96) of standard cost is actually absored by 3988 lamps. So Standard Cost per lamp for fixed OH = $40039.52/3988 = $10.04

Monthly expected Production = Budgeted Fixed OH standard cost / Standard cost per lamp for Fixed OH

= $40280.48 / $10.04

= 4012 lamps

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