Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum...

70.2K

Verified Solution

Question

Accounting

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 35,000 desk lamps produced annually follows.

Direct materials $ 260,000
Direct labor
Fabricating department (6,500 DLH $34 per DLH) $ 221,000
Assembly department (16,200 DLH $22 per DLH) $ 356,400
Machine hours
Fabricating department 14,100 MH
Assembly department 20,500 MH

Expected overhead cost and related data for the two production departments follow.

Fabricating Assembly
Direct labor hours 120,000 DLH 345,000 DLH
Machine hours 170,000 MH 130,000 MH
Overhead cost $ 420,000 $ 420,000

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.imageimageimageimage

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. Estimated overhead costs Estimated direct labor hours Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate. Direct materials Direct Labor - Assembly Direct Labor - Fabricating Overhead Direct materials Total manufacturing costs Units produced Manufacturing cost per unit Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 ------------- Compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department. (Round your answers to 2 decimal places.) Departmental overhead rate Fabricating MH Assembly DLH Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 required 4 Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps. Direct labor Overhead TSG 0 per unit

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students