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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 Desk lamp 209,000 DLH 66,000 MH 22,000 DLH 69,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating $ 528,000 Units 4,000 Required 1 Assembly $ 396,000 Number of Direct Labor Hours per Unit 5 DLH per unit Fabricating Department Required 2 Required: 1. Determine the plantwide overhead rate using 231,000 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. Machine Hours per Unit 4 MH per unit Required 3 Required 4 Assembly Department Direct Labor Hours Machine Hours per per Unit Unit 3 DLH per unit 0.3 MH per unit = Determine the plantwide overhead rate using 231,000 direct labor hours as the allocation base. Piquired 1 Required 2 >
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