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

Question:

Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours \((\mathrm{MH})\) and direct labor hours (DLH).

Overhead cost.... Direct labor hours... Machine hours..... Fabricating Assembly $300,000 75,000 DLH 80,000 MHLaval reports the following for one of its products, a desk lamp.

Desk lamp.... Number of Units 4,000 Fabricating Department Direct Labor Hours per Unit 4 DLH per unit 3 MH

Required
1. Determine the plantwide overhead rate using 200,000 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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: