Answered step by step
Verified Expert Solution
Link Copied!

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.

Direct materials $ 265,000
Direct labor
Fabricating department (9,500 DLH $31 per DLH) $ 294,500
Assembly department (16,000 DLH $23 per DLH) $ 368,000
Machine hours
Fabricating department 14,300 MH
Assembly department 21,200 MH

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

Fabricating Assembly
Direct labor hours 210,000 DLH 335,000 DLH
Machine hours 159,000 MH 130,000 MH
Overhead cost $ 400,000 $ 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles

Authors: Howard F. Stettler

3rd Edition

0130521183, 9780130521187

More Books

Students also viewed these Accounting questions

Question

6. Explain the strengths of a dialectical approach.

Answered: 1 week ago