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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

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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 cost Direct labor hours Fabricating $ 1,512,000 311,200 DLH) Machine hours 84,000 MH Assembly $264,000 44,000 DLH 80,500 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 1 DLH per unit 0.4 MH per unit 1. Determine the plantwide overhead rate using 355,200 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.

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