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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
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 31,000 desk lamps produced annually follows Direct materials Direct labor $275,000 Fabricating department (9,000 DLH $28 per DLH) Assembly department (16,200 DLH x $26 per DLH) $252,000 $421,200 Machine hours Fabricating department Assembly department 14,600 MH 20,850 MH Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Overhead cost Fabricating Assembly 21,000 DLH 320,000 DLH 168,000 MH 132,000 MH $360,000 $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 ratee 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 amps Complete this question by entering your answers in the tabs below Required 1 Required 2Required 3 Required 4 Determine the plantwide overhead rate for Laval using direct labor hours as a base
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