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 22,000 desk lamps produced annually follows.

Direct materials	$	275,000
Direct labor
Fabricating department (6,500 DLH $35 per DLH)	$	227,500
Assembly department (15,800 DLH $22 per DLH)	$	347,600
Machine hours
Fabricating department		14,400	MH
Assembly department		21,150	MH

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

	Fabricating			Assembly
Direct labor hours		180,000	DLH		310,000	DLH
Machine hours		160,000	MH		125,000	MH
Overhead cost	$	350,000		$	420,000

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.

Determine the plantwide overhead rate for Laval using direct labor hours as a base.

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