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Overhead cost Direct labor hours Machine hours Fabricating $960,000 218,000 DLH 80,000 MH Assembly $ 260,000 26,000 DLH 71,500 MH Laval reports the following
Overhead cost Direct labor hours Machine hours Fabricating $960,000 218,000 DLH 80,000 MH Assembly $ 260,000 26,000 DLH 71,500 MH Laval reports the following for one of its products, a desk lamp. Units 4,000 Number of Desk Lamp Required: Fabricating Department Assembly Department Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per Unit per Unit 5 DLH per unit Unit 2 MH per unit per Unit 2 DLH per unit 8.6 MH per unit 1. Determine the plantwide overhead rate using 244,000 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 244,000 direct labor hours as the allocation base. Bandred 2
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