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

Managerial Accounting
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Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
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Assembly department (16,200 DLH x $26 per DLH)
Machine hours
Fabricating department
Assembly department
14,300 MH
21,250 MH
Expected overhead cost and related data for the two production departments follow.
Fabricating
Assembly
Direct labor hours
120,000 DLH 250,000 DLH
162,000 MH
Machine hours
131,000 MH
Overhead cost
$310,000
$440,000
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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3 Required 4
Determine the plantwide overhead rate for Laval using direct labor hours as a base.
Required
Required 2 >
$421,200
Transcribed Image Text:Assembly department (16,200 DLH x $26 per DLH) Machine hours Fabricating department Assembly department 14,300 MH 21,250 MH Expected overhead cost and related data for the two production departments follow. Fabricating Assembly Direct labor hours 120,000 DLH 250,000 DLH 162,000 MH Machine hours 131,000 MH Overhead cost $310,000 $440,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the plantwide overhead rate for Laval using direct labor hours as a base. Required Required 2 > $421,200
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 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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Required 4
Determine the plantwide overhead rate for Laval using direct labor hours as a base.
Transcribed Image Text: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 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the plantwide overhead rate for Laval using direct labor hours as a base.
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