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
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 tie fabricating department and assembled in the assembly department. Information related to the 34,000 desk lamps produced annually follows Direct materials Direct labor $265, 000 Fabricating department (9,000 DLH $28 per DLH) Assembly department (15, 600 DLH$29 per DLH) Fabricating department $252, 000 $452, 400 Machine hours 15, 300 MH 21, 150 MH Assembly department Expected overhead cost and related data for the two production departments follow Direct labor hours Machine hours Overhead cost Fabricating Assembly 110, 000 DLH 365,000 DLH 169,000 MH 121,000 MH ,000 $425,000 $360 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 ovehead 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. Required 2 Complete this questlon by entering your answers In Required 1 Required 2 Required 3 Required 4 Determine the total manufacturing cost per unit for the alu Total manufacturing costs Units produced Manufacturing cost per unit Complete thls 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.) overhead rate Fabricating Assembly MH DLH Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminunm desk lamps. Direct labor per unit Required 3 Prey ot 14 core anse

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

ISE Fundamentals Of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W. Maher

6th Edition

1260569098, 9781260569094

More Books

Students also viewed these Accounting questions

Question

Describe the major barriers to the use of positive reinforcement.

Answered: 1 week ago