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 32,000 desk lamps produced annually follows. $270,000 Direct materials Direct labor Fabricating department (7,000 DLH * $25 per DLH) Assembly department (15,200 DLH x $29 per DLH) Machine hours Fabricating department Assembly department $175,000 $440,800 15,000 MH 21, 200 MH Expected overhead cost and related data for the two production departments follow Direct labor hours Machine hours Overhead cost Fabricating Assembly 160,000 DLH 290,000 DLH 158,000 MH121,000 MH $310,000 $440,000

Answer 1

Required 1
	Estimated overhead costs			750000	1.67	per direct labor hour
	Estimated direct labor hours			450000
Required 2
	Direct Materials				270,000
	Direct labor-Fabricating				175,000
	Direct labor-Assembly				440,800
	overhead				37074
	Total manufacturing costs				922,874
	Units produced				32,000
	Manufacturing cost per unit				28.84
Required 3			Departmental oh rate
	Fabricating		1.96	MH
	Assembly		1.52	DLH
Required 4
	Direct materials				270,000
	Direct labor
	Fabricating			175,000
	Assembly			440,800
					615,800
	overhead
	Fabricating			29400
	Assembly			23104
					52504
					938,304
	units produced				32,000
	manufacturing cost per unit				29.32	per unit
	( as for last part model 212 enter the loss in negative
	as -220.45)