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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
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 33,000 desk lamps produced annually follows. Direct materials Direct labor Fabricating department (9,500 DLH x $32 per DLH) $275,000 5304,000 Assembly department (15,800 DLH * $22 per $347,600 DLH) Machine hours Fabricating department Assembly department 15,200 MH 20,050 MH Expected overhead cost and related data for the two production departments follow. Fabricating Assembly Direct labor hours Machine hours Overhead cost 120,000 DLH 300,000 DLH 165,000 MH 123,000 MH $350,000 $440,000 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 Required 1 Required 2 Required 3 Required 4 Determine the plantwide overhead rate for Laval using direct la base.
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