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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 the assembly department. Information related to the 29,000 desk lamps produced annually follows.

Direct materials $ 265,000
Direct labor
Fabricating department (6,500 DLH $30 per DLH) $ 195,000
Assembly department (15,600 DLH $24 per DLH) $ 374,400
Machine hours
Fabricating department 14,800 MH
Assembly department 20,200 MH

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

Fabricating Assembly
Direct labor hours 170,000 DLH 315,000 DLH
Machine hours 164,000 MH 125,000 MH
Overhead cost $ 400,000 $ 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.

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