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 26.000 desk lamps produced annually follows 5.200,000 Direct labor Fabricating department (0.000 DLH Assembly department (15,600 DLH 520 per DUH) 527 per OLH) 16.00 5421,200 Fabricating department Assembly department Expected overhead cost and related data for the two production departments follow Direct labor hours Intricate 120,000 DLH 156,000 1410,000 Assembly 315,000 OLM 124.000 MH $440,000 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 plantwde 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 to determine the total manufacturing cost per un for the aluminum desk lamps. Complete this question by entering your answers in the tabs belo Required 1 Required 2 required Determine the plant wide overhead rate for Lavalsing direct labor hours as a base Required 2 )

Question 2.

Question 3.

Answer 1

Laval
Part 1 - Plant wide OH rate
( 410000 + 440000 )/ ( 120000 + 315000 )
850000/435000
$ 1.9540 per DLH
Part 2
DM	280000
DL:-
Fabricating	160000
Assembly	421200
OH :-
( 8000 + 15600 ) * 1.9540	46115
Total cost	907315
Units produced	26000
Unit cost	34.89673077
Part 3 - Departmental OH rate
Fabricating :- 410000 / 156000 = $ 2.6282 per MH
Assembly :- 440000 / 315000 = $ 1.3968 per DLH
Part 4
DM	280000
DL:-
Fabricating	160000
Assembly	421200
OH :-
Fabricating ( 14200 * 2.6282 )	37320
Assembly ( 15600 * 1.3968 )	21790
Total cost	920310
Units produced	26000
Unit cost	35.39653846
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