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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
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 $ 1,656,000 Desk lamp 510,000 DLH 92,000 MH 32,000 DLH 74,500 MH Laval reports the following for one of its products, a desk lamp. Number of Units 4,000 Assembly $ 512,000 Fabricating Department Direct Labor Hours Machine Hours per per Unit Unit 4 DLH per unit 2 MH per unit Required: 1. Determine the plantwide overhead rate using 542,000 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. Assembly Department Direct Labor Hours Machine Hours per Unit per Unit 1 DLH per unit. 0.6 MH per unit 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 542,000 direct labor hours as the allocation base.
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