Question

Exercise 17-10 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 Laval produces lamps and home lighting foxtures. 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 33.000 desk lamps produced annually follows. $275,000 Direct waterials Direct labor Fabricating department 6.000 DLH Assembly departent (16,200 DLH Machine hours. Fabricating department Assembly department 527 per DLH) 529 per DLH) $162.ee $469,800 14,500 21.209 Expected overhead cost and related data for the two production departments follow Direct labor hours Machine hours Overhead cost Fabricating 160,000 DUH 168,000 $380,000 Assembly 345,000 DLH 132,000 MH $430,000 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 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below.

Answer 1

Answer is given below

1 Plantwide overhead rate Estimated Overhead costs Direct labor hours $810,000 505,000 $1.60 Per direct labor hour $275,000 Direct Material Direct Labor Fabricating Department Assembly Department Overhead applied Total manufacturing cost Units produced manufacturing cost per unit $162,000 $469,800 $35,520 (22,200* $1.60) $942,320 33,000 $28.56 3 Departmental overhead rate Total overheads Machine hours Machine hour rate Fabricating $380,000 168,000 $2.26 Total overheads Direct labor hours Direct labor hour rate Assembly $430,000 $345,000 $1.25 $275,000 $162,000 $469,800 $631,800 Direct Material Direct Labor Fabricating Department Assembly Department Overhead applied Fabricating Department Assembly Department Total manufacturing cost Units produced manufacturing cost per unit $32,798 $20,191| (14,500 X $2.26) $52,989|(16,200 X $1.25) $959,789 $33,000 $29.08