Exercise 17-9 (Algo) Allocating overhead using plantwide rate and departmental rates LO P1, P2 Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Fabricating Overhead cost $ 1,280,000 Direct labor hours Machine hours 182,500 DLH 80,000 MH Assembly $ 420,000 30,000 DLH 73,500 MH Laval reports the following for one of its products, a desk lamp. Number of Desk lamp Units 5,000 Required: Fabricating Department Assembly Department Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per per Unit per Unit Unit 5 DLH per unit 4 MH per unit Unit 3 DLH per unit 0.5 MH per unit 1. Determine the plantwide overhead rate using 212,500 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the 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. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the plantwide overhead rate using 212,500 direct labor hours as the allocation base. < Required 1 Required 2 >

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Exercise 17-9 (Algo) Allocating overhead using plantwide rate and departmental rates LO P1, P2
Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours
(MH) and direct labor hours (DLH).
Fabricating
Overhead cost
$ 1,280,000
Direct labor hours
Machine hours
182,500 DLH
80,000 MH
Assembly
$ 420,000
30,000 DLH
73,500 MH
Laval reports the following for one of its products, a desk lamp.
Number of
Desk lamp
Units
5,000
Required:
Fabricating Department
Assembly Department
Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per
per Unit
per Unit
Unit
5 DLH per unit
4 MH per unit
Unit
3 DLH per unit 0.5 MH per unit
1. Determine the plantwide overhead rate using 212,500 direct labor hours as the allocation base.
2. Determine the overhead cost per unit for the 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. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3
Required 4
Determine the plantwide overhead rate using 212,500 direct labor hours as the allocation base.
< Required 1
Required 2 >
Transcribed Image Text:Exercise 17-9 (Algo) Allocating overhead using plantwide rate and departmental rates LO P1, P2 Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Fabricating Overhead cost $ 1,280,000 Direct labor hours Machine hours 182,500 DLH 80,000 MH Assembly $ 420,000 30,000 DLH 73,500 MH Laval reports the following for one of its products, a desk lamp. Number of Desk lamp Units 5,000 Required: Fabricating Department Assembly Department Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per per Unit per Unit Unit 5 DLH per unit 4 MH per unit Unit 3 DLH per unit 0.5 MH per unit 1. Determine the plantwide overhead rate using 212,500 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the 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. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the plantwide overhead rate using 212,500 direct labor hours as the allocation base. < Required 1 Required 2 >
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