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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 36,000 desk lamps produced annually follow. $ 265,000 Direct materials Direct labor Fabricating department (7,500 DLH * $28 per DLH) Assembly department (16,600 DLH * $23 per DLH) Machine hours Fabricating department Assembly department $ 210,000 $ 381,800 15,300 MH 21,050 MH Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Overhead cost Fabricating 160,000 DLH 173,000 MH $370,000 Assembly 330,000 DLH 127,000 MH $430,000 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. (Round the intermediate calculations to 2 decimal places for overhead costs.) Direct labor unit 3. Compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.(Round your answers to 2 decimal places.) Departmental overhead rate MH Fabricating Assembly DLH 4. Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps. (Round the intermediate calculations to 2 decimal places for overhead costs.) Direct labor Overhead unit
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