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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 33,000 desk lamps produced annually follows. $275,000 Direct materials Direct labor Fabricating department (7,000 DLH X $ 34 per DLH) Assembly department (15,400 DLH X $29 per DLH) Machine hours Fabricating department Assembly department $ 238,000 $ 446,600 14,400 MH 21,000 MH Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Overhead cost FabricatingAssembly 110,000 DLH 300,000 DLH 158,000 MH 126,000 MH $340,000 $410,000 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. $ 1.83 per direct labor hour Estimated overhead costs Estimated direct labor hours | $ 750,000 410,000 Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate. Total manufacturing costs Units produced Manufacturing cost per unit Complete this question by entering your answers in the tabs below. 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 Required 1 Required 2 Required 3 Required 4 Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps. Direct labor Overhead per unit
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