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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 its assembly department. Information related to the 30,000 desk lamps produced annually follow. Direct materials Direct labor $270,000 Fabricating department (6,000 DLH $27 per DLH) Assembly department (15,800 DLH x $23 per DLH) 162,000 $ 363,400 Machine hours Fabricating department Assembly department 14,600 MH 20,700 MH Expected overhead cost and related data for the two production departments follow Direct labor hours Machine hours Overhead cost Fabricating 190,000 DLH 156,000 MH 300,000 DLH 123,000 MH $330,000 $420,000 Required 1. Determine the plantwide overhead rate for Laval using direct labor hours as a base. (Round your answer to 2 decimal places.) 2. Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate. (Round the intermediate calculations to 2 decimal places for overhead costs.) Direct labor unit
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