(1) Plant wide overhead rate uses single overhead rate to allocate cost
=Total overhead cost/cost driver
Total overhead cost = $340,000+$420,000
=$760,000
Cost driver = Total direct labor hours
=200,000+280,000
=480,000
=Total overhead cost/cost driver
=$760,000/480,000
=$1.58 per direct labor hour
estimated overhead cost | $760,000 | $1.58 per direct labor hour |
estimated direct labor hours | 480,000 | |
(2) cost of 27,000 desks -PLANTWIDE RATE
Direct Material | $275,000 | Given |
Direct labor-Fabricating | $182,000 | Given |
Direct labor-Assembly | $360,000 | Given |
Overhead | $36,182 | [$1.58*(6500+16400)] As the total direct labor hour used by 27000 desks are 6500+16400=22,900 |
Total manufacturing costs | $853,182 | ($275,000+$182,000+$360,000+$36,182) |
units produced | 27,000 | |
Manufacturing cost per unit | $31.60 | [$853,182/27,000] |
(3) fabricating department = machine hours
assembly department = direct labor hours
*Fabricating cost per machine hour = $340,000/162,000 machine hour
=$2.10 per machine hour
*Assembly department = $420,000/280,000 DLH
=$1.5 per DLH
department overhead rate | ||
Fabricating | $2.10 per machine hour | |
Assembly | $1.5 per DLH |
(4) cost of 27,000 desks - DEPARTMENTAL RATES
Direct Material | $275,000 | Given | |
Direct labor-Fabricating | $182,000 | Given | |
Direct labor-Assembly | $360,000 | Given | |
542,000 | |||
Overhead | |||
Fabricating | $30,030 | $2.10 per machine hour*14,300 machine hours | |
Assembly | $24,600 | $1.5 per direct labor hour*16,400 direct labor hour | |
54,630 | |||
Total manufacturing costs | $871,630 | ($275,000+$182,000+$360,000+$30,030+24,600) | |
units produced | 27,000 | ||
Manufacturing cost per unit | $32.28 | [$871,630/27,000] |
Exercise 17-6 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2...
Exercise 17-6 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 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 25,000 desk lamps produced annually follows. $265,000 Direct materials Direct labor Fabricating department (9,000 DLH * $28 per DLH) Assembly department (15,400 DLH * $23 per...
Exercise 17-10 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 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 26,000 desk lamps produced annually follows. $270,000 Direct materials Direct labor Fabricating department (6,500 DLH $29 per DLR) Assembly department (15,600 DL $28 per DLH) Machine...
Exercise 17-10 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 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 26,000 desk lamps produced annually follows. $ 270,000 Direct materials Direct labor Fabricating department (6,500 DLH $29 per DLR) Assembly department (15,600 DLH * $28 per...
Exercise 17-10 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 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 33.000 desk lamps produced annually follows. $275,000 Direct materials Direct labor Fabricating department (6.000 DLH X $27 per DLH) Assembly department (16,200 DLH X 529 per...
Exercise 17-6 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 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 35.000 desk lamps produced annually follows. $280,000 Direct materials Direct labor Fabricating department (7,000 DLR Assembly department (16,000 Machine hours Fabricating department Assembly department $20 per...
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...
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 35,000 desk lamps produced annually follows. $260,000 Direct materials Direct labor Fabricating department (6,500 DLH * $32 per DLH) Assembly department (16,600 DLH * $21 per DLH) Machine hours Fabricating department Assembly department $208,000 $348,600 15,300 MH 20, 650 MH Expected overhead...
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 31,000 desk lamps produced annually follows. $255,000 Direct materials Direct labor Fabricating department (9,000 DLH X $22 per DLH) Assembly department (16,000 DLH * $20 per DLH) Machine hours Fabricating department Assembly department $198,000 $320,000 14,800 MH 20,800 MH Expected overhead cost...
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 deportment and assembled in the assembly department. Information related to the 24,000 desk lamps produced bnnually follows. $ 270,000 Direct materials Direct labor Fabricating department (7,000 DLH * $23 per DLH) Assembly department (15,800 DLH X $22 per DLH) Machine hours Fabricating department Assembly department $161,000 $347,600 15,000 MH 21, 250 MH Expected...
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 22,000 desk lamps produced annually follows. Direct materials $ 265,000 Direct labor Fabricating department (8,500 DLH × $20 per DLH) $ 170,000 Assembly department (15,400 DLH × $22 per DLH) $ 338,800 Machine hours Fabricating department 15,100 MH Assembly department 20,600 MH...