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 24,000 desk lamps produced annually follows.

Direct materials $ 275,000

Direct labor

Fabricating department (7,000 DLH $23 per DLH) $ 161,000

Assembly department (16,000 DLH $28 per DLH) $ 448,000

Machine hours

Fabricating department 15,000 MH

Assembly department 21,050 MH

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

Fabricating Assembly

Direct labor hours

110,000 DLH

365,000 DLH

Machine hours

169,000 MH

125,000 MH

Overhead cost

$ 370,000

$ 440,000

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.