Overhead cost Direct labor hours. Machine hours Desk lamp. 131,600 DLH 90,000 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Number of Direct Labor Hours per Machine Hours per Units Unit Unit 6,000 4 DLH per unit 3 MH per unit Fabricating $ 1,260,000 Required: 1. Determine the plantwide overhead rate using 159,600 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. Desk lamp Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assembly $ 336,000 S Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base. 10 per direct labor hour Budgeted overhead costs $ 1,506,000 Budgeted direct labor hours 150,000 Required 1 28,000 DLH 72,500 MH Required 1 Required 2 Required 3 Required 4 Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. Hours Used DLHS Plantwide Overhead Rate Department Fabricating $ $ Assembly Total Answer is not complete. Required 2 < Required 1 s 32 32 Xper direct labor hour Required 3 What is the departmental overhead rate for the Fabricating Department? S 1,260,000✔ Budgeted overhead costs Budgeted machine hours 14 ✓ 12 < Required 1 ✓ 90,000 What is the departmental overhead rate for the Assembly Department? Budgeted overhead costs $336,000✔ Budgeted direct labor hours ✔✓ 28,000✔ Assembly Department Direct Labor Hours per Machine Hours per Unit Unit 8.4 MH per unit 2 DLH per unit < Required 2 Required 4 Departmental Overhead Rate Required 2 > per machine hour per direct labor hour ✔ < Required 3 Required 3 > Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Hours per Unit Overhead Cost per Unit 14 per machine hour ✓ 12✔ per direct labor hour ✓✔ Required 4 > 3 S 20 S Overhead Cost per Unit 120 Xper unit per unit per unit Required 4 > 24 144

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
100%

Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH).

  1. Determine the plantwide overhead rate using 159,600 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.
Overhead cost
Direct labor hours.
Machine hours
Desk lamp
131,600 DLH
90,000 MH
28,000 DLH
72,500 MH
Laval reports the following for one of its products, a desk lamp.
Required:
1. Determine the plantwide overhead rate using 159,600 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.
Required 1
Fabricating
$ 1,260,000
Complete this question by entering your answers in the tabs below.
Fabricating Department
Assembly Department
Number of Direct Labor Hours per Machine Hours per Direct Labor Hours per Machine Hours per
Units
Unit
Unit
Unit
0.4 MH per unit
Unit
6,000
4 DLH per unit
3 MH per unit
2 DLH per unit
Required 1 Required 2 Required 3 Required 4
Desk lamp
Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base.
= s
Budgeted overhead costs
Budgeted direct labor hours
$ 1,596.000
159,600
Assembly
$ 336,000
Required 2 Required 3
Required 1
$
Department
Fabricating
Assembly
Total
X Answer is not complete.
< Required 1
Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate.
Hours Used
XDLHS
$
$
Required 2
Required 4
Plantwide Overhead Rate
32 per direct labor hour ✔
Required 3
What is the departmental overhead rate for the Fabricating Department?
$ 1,260,000 ✓
Budgeted overhead costs
Budgeted machine hours
✓
90,000 ✓
What is the departmental overhead rate for the Assembly Department?
Budgeted overhead costs
S 336,000
Budgeted direct labor hours
10
< Required 1
✓
28,000✔
< Required 2
Required 4
Departmental Overhead Rate
per direct labor hour
Required 2 >
14 per machine hour ✓
12✔ per direct labor hour ✔
< Required 3
Required 3 >
Determine the overhead cost per unit for the desk lamp using the departmental overhead rates.
Hours per
Unit
Overhead Cost per Unit
14 per machine hour
12 per direct labor hour
Required 4 >
3 S
2✔
s
Overhead Cost per Unit
120 Xper unit
24
144
per unit
per unit
Required 4 >
Transcribed Image Text:Overhead cost Direct labor hours. Machine hours Desk lamp 131,600 DLH 90,000 MH 28,000 DLH 72,500 MH Laval reports the following for one of its products, a desk lamp. Required: 1. Determine the plantwide overhead rate using 159,600 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. Required 1 Fabricating $ 1,260,000 Complete this question by entering your answers in the tabs below. Fabricating Department Assembly Department Number of Direct Labor Hours per Machine Hours per Direct Labor Hours per Machine Hours per Units Unit Unit Unit 0.4 MH per unit Unit 6,000 4 DLH per unit 3 MH per unit 2 DLH per unit Required 1 Required 2 Required 3 Required 4 Desk lamp Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base. = s Budgeted overhead costs Budgeted direct labor hours $ 1,596.000 159,600 Assembly $ 336,000 Required 2 Required 3 Required 1 $ Department Fabricating Assembly Total X Answer is not complete. < Required 1 Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. Hours Used XDLHS $ $ Required 2 Required 4 Plantwide Overhead Rate 32 per direct labor hour ✔ Required 3 What is the departmental overhead rate for the Fabricating Department? $ 1,260,000 ✓ Budgeted overhead costs Budgeted machine hours ✓ 90,000 ✓ What is the departmental overhead rate for the Assembly Department? Budgeted overhead costs S 336,000 Budgeted direct labor hours 10 < Required 1 ✓ 28,000✔ < Required 2 Required 4 Departmental Overhead Rate per direct labor hour Required 2 > 14 per machine hour ✓ 12✔ per direct labor hour ✔ < Required 3 Required 3 > Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Hours per Unit Overhead Cost per Unit 14 per machine hour 12 per direct labor hour Required 4 > 3 S 2✔ s Overhead Cost per Unit 120 Xper unit 24 144 per unit per unit Required 4 >
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps with 3 images

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education