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 $265,000

Direct labor:

Fabricating department (7,500 DLH $26 per DLH)$195,000

Assembly department (15,600 DLH $24 per DLH)$374,400

Machine hours:

Fabricating department15,200MH

Assembly department20,650MH

Expected overhead cost and related data for the two production departments follow.

Fabricating Assembly

Direct labor hours 210,000DLH 360,000DLH

Machine hours 156,000MH 121,000MH

Overhead cost $400,000 $410,000

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.