Check my work 2 Laval produces lamps and home lighting fixtures. Its most popula
ID: 2546538 • Letter: C
Question
Check my work 2 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 28,000 desk lamps produced annually follows .5 ints Direct naterials Direct labor $265, 000 rabricating department (7,50 DLH$23 per DIR) Assembly department (16,600 DLH $23 per DLH) $172,500 $381,800 Machine hours eBook Hint Print ferences 15,300 MH 21,000 MH Assembly department Expected overhead cost and related data for the two production departments follow. Direct labor hours Machine hours Overhead cost Fabricating Assembly 180,000 DLH 335,000 DLH 158,000 MH 130,000 MH 340,000 $440, 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 lamne
Explanation / Answer
Answer 1:
Plantwide Overhead Rate = Total Overhead Cost / Total Direct Labour Hours = 780,000 / 515,000 = 1.51 (Rounded off)
Answer 2:Calculating Manufacturing Cost per Unit for aluminium desk lamp
Answer 3:
Overhead Cost of Fabricating Dept. = 340,000
Total Machine Hours = 130,000
Overhead Rate (Fabricating Dept.)= 340,000 / 130,000 = 2.62 (Rounded off) per MH
Overhead Cost of Assembly Dept. = 440,000
Total Direct Labour Hours = 335,000
Overhead Rate (Assembly Dept.)= 440,000 / 335,000 = 1.31 (Rounded off) per DLH
Answer 4:
Fabricating Dept Assembly Dept Total Overhead Cost 3,40,000 4,40,000 7,80,000 Direct Labour Hours 1,80,000 3,35,000 5,15,000