Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Fabricating Overhead

Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Fabricating Overhead cost $ 960,000 Direct labor hours Machine hours 218,000 DLH 80,000 MH Assembly $ 260,000 26,000 DLH 71,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Assembly Department Desk lamp Number of Units 4,000 5 DLH per unit Direct Labor Hours Machine Hours per Direct Labor Hours per Unit Unit per Unit 2 DLH per unit Machine Hours per Unit 2 MH per unit 0.6 MH per unit Required: 1. Determine the plantwide overhead rate using 244,000 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the 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. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the plantwide overhead rate using 244,000 direct labor hours as the allocation base. = Required 1 Required 2 Required 3 Required 4 Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. Desk lamp Plantwide Overhead Rate Hours Used Overhead 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. What is the departmental overhead rate for the Fabricating Department? What is the departmental overhead rate for the Assembly Department? Required 1 Required 2 Required 3 Required 4 Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Department Departmental Overhead Rate Hours per Unit Overhead Cost per Unit Fabricating Assembly Total

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

Management Accounting A Decision Emphasis

Authors: Don T. DeCoster, Eldon L. Schafer, Mary T. Ziebell

4th Edition

0471637130, 978-0471637134

More Books

Students also viewed these Accounting questions