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Exercise 17-10 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 Laval produces lamps and home lighting fixtures. Its most
Exercise 17-10 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped in the fabricating department and assembled in the assembly department. Information related to the 27,000 desk lamps produced annually follows. $275,000 Direct materials Direct labor Fabricating department (8,500 DLH ~ $26 per DLH) Assembly department (16,600 DLH ~ $22 per DLH) Machine hours Fabricating department Assembly department $221,000 $365,200 14,200 MH 20, 250 MH Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Overhead cost Fabricating 120,000 DLH 152,000 MH $360,000 Assembly 275,000 DLH 134,000 MH $435,000 Required 1. Determine the plantwide overhead rate for Laval using direct labor hours as a base. 2. Determine the total manufacturing cost per unit for the aluminum 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. Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the plantwide overhead rate for Laval using direct labor hours as a base. 0 Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate. 0 Total manufacturing costs Units produced Manufacturing cost per unit Required 1 Required 2 Required 3 Required 4 Compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department. (Round your answers to 2 decimal places.) Departmental overhead rate MH Fabricating Assembly DLH Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the a desk lamps. Direct labor 0 Overhead 0 S 0 0 per unit
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