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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 $1,360,000 143,200 DLH 85,000 HH Assenbly $ 252,000 18,000 DLH 67, 500 HH Overhead cost Direct labor hours Machine hours Laval reports the following for one of its products, a desk lamp. Fabricating Departnent Assenbly Department Number of Direct Labor Hours per Machine Hours per Direct Labor Hours per Hachine Hours per Units 6,000 Unit 3 DLH per unit Unit Unit 2 MH per unit 1 DLH per unit Unit 0.6 MH per unit Desk lamp Required: 1. Determine the plantwide overhead rate using 161.200 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. Complete this question by entering your answers in the tabs below. Required 1 Required ? Required 3 Required 4 Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. Plantwide Overhead Rate Hours Used Overhead Cost per Unit Desk lamp
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