The capability-building process .a. is first and foremost an activity in empowering employees, putting them on a single team (or in a single department), and giving them the tools and training to perform the desired activity with a high degree of proficiency. b. is a one-step process built around properly training and empowering employees to perform their assigned activities in a tightly-prescribed manner. c. can be a shortcut by weeding out underperforming employees and replacing them with people having stronger skill sets and know-how. d. is best done by forming a new department charged with developing the desired competence or capability. e. requires that a company first develop the ability to do something, however imperfectly or inefficiently; second, translate this ability into a competence and/or capability by learning to do the activity consistently well and at an acceptable cost; and then continue to polish and refine its know-how in an effort to further improve its performance, ideally striving to match or beat rivals in performing the activity.

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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 22,000 desk lamps produced annually follows. direct materials $280,000direct labor fabricating department (8,000 dlh × $24 per dlh) $192,000assembly department (16,600 dlh × $26 per dlh) $431,600machine hours fabricating department $15,200mhassembly department $20,850mhexpected overhead cost and related data for the two production departments follow. fabricating assemblydirect labor hours 150,000dlh 295,000dlhmachine hours 161,000mh 128,000mhoverhead cost $400,000 430,000required1. 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.