Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours \((\mathrm{MH})\) and direct labor hours (DLH).

Laval reports the following for one of its products, a desk lamp.

Required
1. Determine the plantwide overhead rate using 200,000 direct labor hours as the allocation base.
2. Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate.
3. Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department.
4. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates.

Transcribed Image Text:

Overhead cost.... Direct labor hours... Machine hours..... Fabricating Assembly $300,000 75,000 DLH 80,000 MH $200,000 125,000 DLH 62,500 MH