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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 32,000 desk lamps produced annually follows Direct materials Direct labor $270,000 Fabricating department (8,000 DLH x $32 per DLH) Assembly department (15,800 DLH x $22 per DLH) $256,000 $347,608 Machine hours Fabricating department Assembly department 14,800 MH 21,100 MH Expected overhead cost and related data for the two production departments follow Assembly Direct labor hours Machine hours Overhead cost Fabricating 170,000 DLH 370,000 DLH 167,000 MH 133,000 MH $320,000 $425,000 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 Required 1 Required 2 Required 3 Required 4 Determine the plantwide overhead rate for Laval using direct labor hours as a base. Required 1Required 2 Required 3 Required 4 Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate Total manufacturing costs Units produced Manufacturing cost per unit Required 1Required 2 Required 3 Required 4 Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps. Direct labor Overhead per unit
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