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Exercise 4-5 Rayol produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components

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Exercise 4-5 Rayol 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 its implementation department. Information related to the 35,000 desk lamps produced annually follow. Expected overhead cost and related data for the two production departments follow. Required 1. Determine the plantwide overhead rate for Rayol 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 implementation department. 4. Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps

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