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Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk amp. This lamp is made from components shaped in
Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk amp. This lamp is made from components shaped in the fabricating department and assembled in its assembly department. Information related to the 25,000 desk lamps produced annually follow. Direct materials Direct labor 5 265,000 Fabricating department (7,500 DLH x 528 per DLH) Assembly department (16,400 DLH 528 per DLH) 5 210,000 5 459,200 Machine hours Fabricating department Assembly department 14,200 MH 20,800 MH Expected overhead cost and related data for the two production departments followw. Direct labor hours Machine hours Overhead cost Fabricating 190,000 DLH 170,000 MH 340,000 DLH 125,000 MH 5 350,000 5 405,000 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
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