Question
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
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 $270,000 Direct labor: Fabricating department (6,000 DLH $28 per DLH) $168,000 Assembly department (16,200 DLH $26 per DLH) $421,200 Machine hours: Fabricating department 14,800 MH Assembly department 20,800 MH Expected overhead cost and related data for the two production departments follow.
Fabricating Assembly Direct labor hours 130,000 DLH 295,000 DLH Machine hours 168,000 MH 129,000 MH Overhead cost $ 390,000 $440,000
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 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 overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.
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Determine the plantwide overhead rate for Laval using direct labor hours as a base. 0 Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate. 0 Total manufacturing costs Units produced Manufacturing cost per unit 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.) Departmental overhead rate MH Fabricating Assembly DLH Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps. Direct labor 0 Overhead 0 0 0 per unitStep by Step Solution
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