Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. Thislamp 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 materialsDirect laborFabricating department (7,500 DLH × $23 per DLH)Assembly department (15,400 DLH × $20 per DLH)Machine hoursFabricating departmentAssembly departmentDirect labor hours.Machine hoursOverhead costExpected overhead cost and related data for the two production departments follow.Fabricating130,000 DLH162,000 MH$360,000Assembly280,000 DLH129,000 MH$445,000$260,000$172,500$308,00015,200 MH21,200 MHRequired1. 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 laborhours in the assembly department.4. Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for thealuminum desk lamps.Complete this question by entering your answers in the tabs below.Required 4Required 1 Required 2 Required 3Determine the plantwide overhead rate for Laval using direct labor hours as a base.< Required 1Required 2 >

Manufacturing cost -is the cost of manufacturing or producing the products or services and includes…

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 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.

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 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.

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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