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Exercise 17-9 (Algo) Allocating overhead using plantwide rate and departmental rates LO P1, P2 Laval produces lighting fixtures. Budgeted information for its two production
Exercise 17-9 (Algo) Allocating overhead using plantwide rate and departmental rates LO P1, P2 Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Fabricating Overhead cost Direct labor hours. Machine hours. $ 996,000 270,000 DLH 83,000 MH Assembly $ 140,000 14,000 DLH 65,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Assembly Department Desk lamp Number of Units 5,000 Direct Labor Hours Machine Hours per Direct Labor Hours per Unit Unit per Unit Machine Hours per Unit 3 DLH per unit 2 MH per unit 1 DLH per unit 0.4 MH per unit Required: 1. Determine the plantwide overhead rate using 284,000 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the 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. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the plantwide overhead rate using 284,000 direct labor hours as the allocation base. = < Required 1 Required 2 >
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