Question

Expected overhead cost and related data for the two production departments follow. FabricatingAssembly Direct labor hours 120,000DLH 340,000DLH Machine hours 166,000MH 125,000MH Overhead cost$350,000 $415,000 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 1

Results are below.

Step-by-step explanation:

Giving the following information:

Fabricating Assembly

Direct labor hours 120,000DLH 340,000DLH

Machine hours 166,000MH 125,000MH

Overhead cost$350,000 $415,000

a. First, we need to determine the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 765,000 / 460,000

Predetermined manufacturing overhead rate= $1.663 per direct labor hour

b. We weren't provided with information regarding direct labor cost, direct material cost, and the number of units produced.

c. Departamental overhead rate:

Fabrication= 350,000/166,000= $2.11 per machine hour

Assembly= 415,000/340,000= $1.221 per direct labor hour