Question

Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped in the fabricating department and assembled in the assembly department. Information related to the 36,000 desk lamps produced annually follows. $265,000 Direct materiale Direct labor Fabricating department (9,000 DLH x $29 per DLH) Assembly department (15,200 DLH X $26 per DLH) Machine hours Fabricating department Ansembly department $261,000 $395,200 14,700 M 21,200 MH Expected overhead cost and related data for the two production departments follow. Fabricating 170,000 DLH 355,000 DLH 157,000 MH $370,000 Ansembly Direct labor hours Machine hours 132,000 MH Overhead cost $410,000 mces Required 1. Determine the plantwide overhead rate for Laval using direct labor hours as a base. 2. Determine the total manufacturing cost per unit for the aluminum 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. Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the plantwide overhead rate for Laval using direct labor hours as a base. Estimated overhead costs Estimated direct labor hours KRequired1 Required 2

Answer 1

Answer: 1.49 Per direct labor hour Estimatd Overhead Costs Estimadet direct labor hours 780000S 525000 Amount(s) 265000 Direct Material Direct labor-Fabricating Direct labor-Assembly Overhead Total manufacturing Cost Units produced Manufacturing Cost per Unit 261000 395200 36058 [19000 x $1.49) + (15200 * $1.49)] 957258 36000 26.59 S Departmental Overhead rate 2.36 MH 1.15 DLH Fabricating Assembly

Amount(S) Amount(S) 280000 Direct Material Direct Labor Fabricating Assembly 2610001 395000 656000 Overhead Fabricating Assembly 14700 21200 35900 971900 36000 27.00 Per Unit Units Produced Manufacturing Cost per Unit S