Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 17-6 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 Laval produces lamps and home lighting fixtures. Its most

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Exercise 17-6 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 28,000 desk lamps produced annually follows. $255,000 Direct materials Direct labor Fabricating department (8,580 DLH $22 per DLH) Assembly department (16,200 DLH * $29 per DLH) Machine hours Fabricating department Assembly department $187. $469,00 14,200 MH 20,450 MM Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Overhead cost Fabricating Assembly 190,000 DLH 285,000 DLH 161, 800 MH128,000 MH $350,000 $425,000 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 la assembly department. 4. Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit fon lamps. 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. Direct materials Direct Labor - Fabricating Direct Labor - Assembly Overhead Total manufacturing costs Units produced Manufacturing cost per unit Breakevenpoint (3) xlsx assembly department. 4. Use departmental overhead rates from requirement 3 to determine the total manufacturing lamps. 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 assembly department. (Round your answers to 2 decimal places.) Departmental overhead rate Fabricating Assembly DLH 2. Determine the total manufacturing cost per unit for the alur 3. Compute departmental overhead rates based on machine assembly department. 4. Use departmental overhead rates from requirement 3 to de lamps. Complete this question by entering your answers in the Required 1 Required 2 | Required 3 Required 4 Use departmental overhead rates from requirement 3 to determ desk lamps. Direct materials Direct labor Fabricating Assembly Overhead Fabricating Assembly

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

How to develop an e - commerce company's background information.

Answered: 1 week ago