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.
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. $270,000 Direct materials Direct labor Fabricating department (8,000 DLH ~ $28 per DLH) Assembly department (15,800 DLH ~ $28 per DLH) Machine hours Fabricating department Assembly department $224,000 $442,400 15,200 MH 20,350 MH Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Overhead cost Fabricating Assembly 120,000 DLH 310,000 DLH 165,000 MH 121,000 MH $380,000 $425,000 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 overhead costs 805,000 $ 1.87 per direct labor hour Estimated direct labor hours 430,000 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 materials $ 270,000 Direct Labor - Assembly Overhead 805,000 224,000 Direct Labor - Fabricating 1,299,000 Total manufacturing costs Units produced Manufacturing cost 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 pe desk lamps. Direct labor 0 Overhead 0 $ 0 o per unit
