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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 30,000 desk lamps produced annually follows. $275,000 Direct materials Direct labor Fabricating department (8,500 DLR $21 per DLR) Assembly department (16,400 DLR $28 per DLH) Machine hours Fabricating department Assembly department $178,500 $459,200 14,500 MM 20.200 MH Expected overhead cost and related data for the two production departments follow. Fabricating Assembly Direct Labor hours 130,000 DLH 285,000 DLH Machine hours 173,000 MM 125,000 MI Overhead cost $400,000 5415,000 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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