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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). Overhead
Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor hours Machine hours Fabricating $ 528,000 209,000 DLH 66,000 MH Assembly $ 396,000 22,000 DLH 69,500 MH Laval reports the following for one of its products, a desk lamp. Desk Lamp Number of Units 4,000 Required: Fabricating Department Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per Unit Assembly Department per Unit per Unit Unit 5 DLH per unit 4 MH per unit 3 DLH per unit 0.3 MH per unit 1. Determine the plantwide overhead rate using 231,000 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 231,000 direct labor hours as the allocation base. Required 21 >
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