Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine...
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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 Fabricating $ 300,000 Direct labor hours Machine hours 75,000 DLH 80,000 MH Assembly $ 200,000 125,000 DLH 62,500 MH Laval reports the following for one of its products, a desk lamp. Desk lamp Number of Units 4,000 Required: Fabricating Department Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per Assembly Department per Unit Unit per Unit Unit 4 DLH per unit 3 MH per unit 2 DLH per unit 0.5 MH per unit 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. 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 Fabricating $ 300,000 Direct labor hours Machine hours 75,000 DLH 80,000 MH Assembly $ 200,000 125,000 DLH 62,500 MH Laval reports the following for one of its products, a desk lamp. Desk lamp Number of Units 4,000 Required: Fabricating Department Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per Assembly Department per Unit Unit per Unit Unit 4 DLH per unit 3 MH per unit 2 DLH per unit 0.5 MH per unit 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.
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Answer Laval Overhead Rate Calculations 1 Plantwide Overhead Rate We are given the total budgeted overhead cost 500000 and the allocation base 200000 ... View the full answer
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