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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 $ 750,000 Direct labor hours 133,000 DLH 75,000 MH Machine hours Assembly $ 192,000 24,000 DLH 70,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Assembly Department Desk lamp Number of Units 5,000 Direct Labor Hours Machine Hours per Direct Labor Hours per Unit Unit per Unit 5 DLH per unit Machine Hours per Unit 2 MH per unit 1 DLH per unit 0.5 MH per unit Required: 1. Determine the plantwide overhead rate using 157,000 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 157,000 direct labor hours as the allocation base. Budgeted overhead costs = 0
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