### Manufacturing Cost Analysis for Laval's Brushed Aluminum Desk LampLaval 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 31,000 desk lamps produced annually is as follows:#### Cost Components| Cost Type | Details | Amount ||------------------------|-----------------------------------------------------------------------------------------------|--------------|| **Direct Materials** | | **$255,000** || **Direct Labor** | | **$492,000** || Fabricating Dept | 6,000 Direct Labor Hours (DLH) x $32 per DLH | $192,000 || Assembly Dept | 15,400 Direct Labor Hours (DLH) x $20 per DLH | $300,000 || **Machine Hours** | | **20,960 MH**|| Fabricating Dept | | 172,000 MH || Assembly Dept | | 129,000 MH |#### Overhead Costs and Related DataThe table below presents the expected overhead cost and related data for the two production departments:| Department | Direct Labor Hours (DLH) | Machine Hours (MH) | Overhead Cost ||-----------------------|--------------------------|---------------------|---------------|| **Fabricating** | 140,000 DLH | 172,000 MH | $330,000 || **Assembly** | 330,000 DLH | 129,000 MH | $435,000 |### Required Calculations1. **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 lamp**:### Instructions for Required Calculations**1. Plantwide Overhead Rate Calculation** To determine the plantwide overhead rate: - Sum the total overhead costs: $330,000 (Fabricating) + $435,000 (Assembly) ## Overhead Cost Analysis and Computation### Data Provided:- **Direct labor hours**: - Laval: 140,000 DLH - DLH: 330,000 DLH- **Machine hours**: - Laval: 172,000 MH - DLH: 129,000 MH- **Overhead cost**: - Laval: $330,000 - DLH: $435,000### Required Tasks: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:**Complete this question by entering your answers in the tabs below.**---### Tab Navigation:#### Required 1 (Active Tab)**Determine the plantwide overhead rate for Laval using direct labor hours as a base.**| **Estimated overhead costs** | ||----------------------|----|| **Estimated direct labor costs** | || **Plantwide rate** | 0 per direct labor hour |#### Required 2- Follow-up tasks based on the provided data and the plantwide overhead rate.#### Required 3 - Further tasks involving departmental overhead rates.#### Required 4 - Final computation of total manufacturing cost per unit for aluminum desk lamps using the derived rates.**Please enter the necessary details in the input fields provided on each tab to accomplish the given tasks.**---### Graphs or Diagrams Explanation:There are no graphs or diagrams in the provided image. Instructions, tables, and text fields dominate the content, thereby directing the user on how to compute overhead rates and manufacturing costs step-by-step.---### Interface Navigation:- **Prev**: Go to the previous page.- **Next**: Navigate to the next page.- **Tabs**: Switch between the different requirement tasks.This section aids the understanding and application of cost accounting methodologies in an academic setting.

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Description: ### Manufacturing Cost Analysis for Laval's Brushed Aluminum Desk LampLaval 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 a

When plantwide overhead rate is used it is calculated by dividing the total estimated overhead by…

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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 31,000 desk lamps produced annually follows. Direct materials Direct labor $255,000 $192,000 Fabricating department (6,000 DLH x $32 per DLH) Assembly department (15,400 DLH x $20 per DLH) Machine hours $308,000 Fabricating department Assembly department 14,400 MH 20,900 MH Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Fabricating 140,000 DLH 172,000 MH $330,000 Assembly 330,000 DLH 129,000 MH $435,000 Overhead cost 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 plamwide 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

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 31,000 desk lamps produced annually follows. Direct materials Direct labor $255,000 $192,000 Fabricating department (6,000 DLH x $32 per DLH) Assembly department (15,400 DLH x $20 per DLH) Machine hours $308,000 Fabricating department Assembly department 14,400 MH 20,900 MH Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Fabricating 140,000 DLH 172,000 MH $330,000 Assembly 330,000 DLH 129,000 MH $435,000 Overhead cost 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 plamwide 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

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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 Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Fabricating 120,000 DLH 162,000 MH $310,000 Assembly. 250,000 DLH 131,000 MH $440,000 Overhead cost 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…
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