Question
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 $ 996,000 Direct labor hours Machine hours 270,000 DLH 83,000 Assembly $ 140,000 14,000 DLH 65,500 Laval reports the following for one of its products, a desk lamp. Desk lamp Required: Number of Unita 5,000 Fabricating Department Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per Assembly Department per Unit Unit per Unit Unit 3 DLH per unit 2 MH per unit 1 DL per unit 0.4 MH per unit 1. Determine the plantwide overhead rate using 284,000 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 Assemblt 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 284,000 direct labor hours as the allocation base.
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