Laval produces lamps and home lighting fixtures. Its most popular product is a...
90.2K
Verified Solution
Link Copied!
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 30,000 desk lamps produced annually follows. $275,000 Direct materials Direct labor Fabricating department (6,508 DLH * $25 per DLH) Assembly department (16,680 DLH * $23 per DLH) Machine hours Fabricating department Assembly department $162,500 $381,800 14,800 MH 20, 300 MH Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Overhead cost Fabricating 160,000 DLH 156,eee MH $340,000 Assembly 315,000 DLH 121,eee MH $430,000 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
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!
