Exercise 4-9 (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). Overhead cost Direct labor hours Machine hours Desk Lamp Fabricating $ 996,000 270,000 DLH 83,000 MH 14,000 DLH 65,500 MH Laval reports the following for one of its products, a desk lamp. Number of Units 5,000 Assembly $ 140,000 Fabricating Department Direct Labor Hours Machine Hours per per Unit 3 DLH per unit Unit 2 MH per unit Assembly Department Direct Labor Hours Machine Hours per per Unit 0.4 MH per unit Unit 1 DLH 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.

Exercise 4-9 (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). Laval reports the following for one of its products, a desk lamp. Nequirea: 1. Determine the plantwide overhead rate using 284,000 direct labor hoturs 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 Fobricating 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