Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 25,000 desk lamps produced annually follows. $265,000 Direct materials Direct labor Fabricating department (8,500 DLH $30 per DLH) Assembly department (15,600 DLH x $20 per DLH) Machine hours Fabricating department Assembly department $255,000 $312,000 14,800 MH 20, 750 MH Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Overhead cost Fabricating 210,000 DLH 174,000 MH $320,000 Assembly 285,000 DLH 127,000 MH $445,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the plantwide overhead rate for Laval using direct labor hours as a base. Estimated direct labor hours Estimated manufacturing costs Required 1 Required 2 Required 3 Required 4 Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate. Direct labor $ 0 o per unit Required 1 Required 2 Required 3 Required 4 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 Required 1 Required 2 Required 3 Required 4 Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps. Direct labor Overhead 0 per unit Required 1 Required 2 Required 3 Required 4 Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps. Direct labor Overhead 0 per unit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started