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Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Fabricating
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 Direct labor hours Machine hours $ 1,140,000 152,000 DLH 95,000 MH Assembly $ 380,000 38,000 DLH 77,500 MH Laval reports the following for one of its products, a desk lamp. Desk lamp Required: Fabricating Department Assembly Department Number of Direct Labor Hours per Machine Hours per Direct Labor Hours per Machine Hours per Units Unit 4,000 Unit 3 DLH per unit Unit Unit 2 MH per unit 2 DLH per unit 0.6 MH per unit 1. Determine the plantwide overhead rate using 190,000 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 190,000 direct labor hours as the allocation base. = Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. Plantwide Overhead Rate Hours Used Overhead Cost per Unit Desk lamp 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? Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Department Fabricating Assembly Total Departmental Overhead Rate Hours per Unit Overhead Cost per Unit
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