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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 5E: Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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