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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 28,000 desk lamps produced annually follows. Direct materials Direct labor $260,000 Fabricating department (6,000 DLH x $25 per DLH) Assembly department (15,400 DLH x $30 per DLH) $150,000 $462,000 Machine hours Fabricating department Assembly department 14,500 MH 20,900 MH Expected overhead cost and related data for the two production departments follow Direct labor hours Machine hours Overhead cost Fabricating Assembly 130,000 DLH 255,000 DLH 155,000 MH 132,000 MH $390,000 $440,000 Requirec 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2Required 3 Required 4 Determine the plantwide overhead rate for Laval using direct labor hours as a base. Required 1 Required 2
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