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 22,000 desk lamps produced annually follows. $280,000 Direct materials Direct labor Fabricating department (9,800 DLH x $20 per DLH) Assembly department (16,000 DLH x $21 per DLH) Machine hours Fabricating department Assembly department $180, eee $336, eee 14, 200 MH 20, 450 MH Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Overhead cost Fabricating 160,000 DLH 152, 800 MH $360,000 Assembly 340,000 DLH 130,000 MH $410,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4

Answer 1

i have rounded all calculations to decimal places

Ques 1
Estimated overhead costs	770000	1.54	per DLH
estimated direct labor hours	500000
(360000+410000)/(160000+340000)	1.54
Ques 2
Direct Materials		280000
Direct Labor
Fabrication	180000
Assembly	336000
		516000
overhead	(9000+16000)*1.54	38500
		554500
units produced		22000
Manufacturing cost per unit		25.20
Ques 3
	Departmental overhead rate
Fabrication	2.37	MH	360000/152000
Assembly	1.21	DLH	410000/160000
Ques 4
Direct Materials		280000
Direct Labor
Fabrication	180000
Assembly	336000
		516000
overhead
Fabrication	33654		2.37*14200
Assembly	19360	53014	16000*1.21
		849014
units produced		22000
Manufacturing cost per unit		38.59