Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use m

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Laval Produces Lighting Fixtures Budgeted Information For Its Two Production Departments Follows The Departments Use M 1 (32.24 KiB) Viewed 31 times

Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor hours Machine hours Fabricating $ 1,280,000 Desk lamp Assembly $ 420,000 182,500 DLH 80,000 MH 30,000 DLH 73,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Assembly Department Number of Direct Labor Hours per Machine Hours per Direct Labor Hours per Machine Hours per Units Unit Unit 5 DLH per unit 5,000 3 DLH per unit Unit 4 MH per unit Unit 0.5 MH per unit Required: 1. Determine the plantwide overhead rate using 212,500 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the 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. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates.