### Overhead Cost Analysis for Laval's Production Departments#### Data OverviewThe expected overhead cost and related data for the two production departments (Fabricating and Assembly) are provided below:| **Category** | **Fabricating** | **Assembly** ||---------------------|---------------------|----------------------|| Direct labor hours | 120,000 DLH | 250,000 DLH || Machine hours | 162,000 MH | 131,000 MH || Overhead cost | $310,000 | $440,000 |#### TasksTo effectively analyze and allocate the overhead costs for Laval, the following tasks are required:1. **Determine the plantwide overhead rate for Laval using direct labor hours as a base.**2. **Calculate 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. **Utilize the departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.**#### Instructions:*Complete the following sections by entering your answers in the tabs provided below.*- **Section for Required 1: Determine the plantwide overhead rate for Laval using direct labor hours as a base.** Enter answers in respective fields, guided by the following layout: | **Input** | **Field** | |-------------------|--------------------| | | | | | | | Total Overhead | |- **Section for Required 2:** [Proceed to Required 2]By following these steps and calculations, you can accurately determine the overhead allocation rates and manufacturing cost per unit, ensuring an efficient and cost-effective production process. ### Laval Aluminum Desk Lamp Production Cost Analysis**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. Below is the detailed information for the 33,000 desk lamps produced annually:#### Cost Breakdown:- **Direct Materials:** $265,000- **Direct Labor:** - Fabricating Department: 7,000 DLH (Direct Labor Hours) × $25 per DLH = $175,000 - Assembly Department: 16,200 DLH × $26 per DLH = $421,200- **Machine Hours:** - Fabricating Department: 14,300 MH - Assembly Department: 21,250 MH#### Expected Overhead Cost and Related Data:The data for the two production departments (Fabricating and Assembly) is detailed below:| | Fabricating | Assembly ||------------------------|-------------------|------------------|| **Direct Labor Hours** | 120,000 DLH | 250,000 DLH || **Machine Hours** | 162,000 MH | 131,000 MH || **Overhead Cost** | $310,000 | $440,000 |#### Required Analysis: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.**---### Instructions for Students:Complete the analysis by entering your answers in the tabs provided below:- **Required 1:** Determine the plantwide overhead rate for Laval using direct labor hours as a base.- **Required 2:** Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.- **Required 3:** Compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.- **Required 4:** Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.By understanding

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Description: ### Overhead Cost Analysis for Laval's Production Departments#### Data OverviewThe expected overhead cost and related data for the two production departments (Fabricating and Assembly) are provided below:| **Category** | **Fabricating** |

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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. Direct materials $265,000 Direct labor Fabricating department (7,000 DLH x $25 per DLH) Assembly department (16,200 DLH x $26 per DLH) Machine hours $175,000 $421,200 Fabricating department Assembly department 14,300 MH 21,250 MH

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. Direct materials $265,000 Direct labor Fabricating department (7,000 DLH x $25 per DLH) Assembly department (16,200 DLH x $26 per DLH) Machine hours $175,000 $421,200 Fabricating department Assembly department 14,300 MH 21,250 MH

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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