Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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 $ 300, see 75,000 DLH 80,00 MH Assembly $ 200,eee 125,088 DLH 62,588 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Assembly Department Number of Direct Labor Hours per Machine Hours per Direct Labor Hours per Machine Hours per Units Unit Unit Unit Unit 4,eee 4 DLH per unit 3 MH per unit 2 DLH per unit 0.5 MH per unit Desk lamp Required: 1. Determine the plantwide overhead rate using 200,000 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 200,000 direct labor hours as the allocation base. 0 Actual overhead costs Actual Direct labor costs Ratused Required 2 > Required 1 Required 2 Required 3 Required 4 Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. (Round Overhead Rate to 2 decimal places.) Plantwide Overhead Rate Hours Used Overhead Cost per Unit Desk lamp Complete this question by entering your answers in the tabs below. 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. (Round your final answers to 2 decimal places.) What is the departmental overhead rate for the Fabricating Department? What is the departmental overhead rate for the Assembly Department? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. (Round your intermediate and final answers to 2 decimal places.) Departmental Overhead Rate Hours per Unit Overhead Cost per Unit Department Fabricating Assembly Total $ 0.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hospitality Industry Managerial Accounting

Authors: Raymond S. Schmidgall

8th Edition

0866124977, 9780866124973

More Books

Students also viewed these Accounting questions