Business, 23.02.2022 06:50 itscheesycheedar

Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Fabricating Assembly Overhead cost $ 750,000 $ 192,000 Direct labor hours 133,000 DLH 24,000 DLH Machine hours 75,000 MH 70,500 MH Laval reports the following for one of its products, a desk lamp. Number of Units Fabricating Department Assembly Department Direct Labor Hours per Unit Machine Hours per Unit Direct Labor Hours per Unit Machine Hours per Unit Desk lamp 5,000 5 DLH per unit 2 MH per unit 1 DLH per unit 0.5 MH per unit Required: 1. Determine the plantwide overhead rate using 157,000 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.

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Laval produces lighting fixtures. Budgeted information for its two production departments follows. T...