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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 $ Assembly Overhead cost 1,170,000 $ 320,000 Direct labor hours 166,250 DLH Machine hours 65,000 MH 20,000 DLH 68,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Number of Direct Labor Hours Desk lamp Units 5,000 Required: per Unit Assembly Department Machine Hours per Unit Direct Labor Hours per Unit Machine Hours 7 DLH per unit 4 MH per unit 2 DLH per unit per Unit 0.5 MH per unit 1. Determine the plantwide overhead rate using 186,250 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. Required Required 2 Required 3 Required 4 Determine the plantwide overhead rate using 186,250 direct labor hours as the allocation base. 0 Required 1 Required Required 3 Required 2 Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. Desk lamp Plantwide Overhead Rate Hours Used Overhead Cost per Unit Required 1 Required 2 Required 3 Required 4 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? Required 1 Required 2 Required 3 Required 4 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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