Laval produces lampe and home lighting tures. its mcet popular product is a brus
ID: 2594764 • Letter: L
Question
Laval produces lampe and home lighting tures. its mcet popular product is a brushed aluminum desk lamp. This lamp is made frem components shaped in tne fabricating department and assembled in the assembty department. Infomacion related to the 22,000 desk lamps produced annualy fellows. Diract matanals Diresctbo $275 000 Fahrrahng department IRAO(1 DI H x $30 per Di H) Assembly department(16,000 DLH 329 per DLH) $464,000 Machine houurs Fabricating departmen Assembly department 4,800 MH 20,10 MH Expected overhead cost and related data for the two praduction depa tments falko Fatricairg Asserb 170 000 DLH 375000 OLH Diract labor hours Maschine hours Overhoad cost 171.000 MH 13000D MH $350,000 $450000 Requirad 1. Uetermre the partwideoverhead rate tor Laval using drect iabor hours as a base 2. Determine the total manufac turing cost per unit tor the aluminum desk lamp using che plantwde ovchcad ratc 3. Compute departmental ovehead rates based on machine hours in the fatrikating dapartment and drect lator hours in the assemby dapartment 4. Use depar mental overhaad rates from requirement 3 o detemine the total manufactunng cos: per unit for the aluminum desk lamps Complete this question by entering your aiswers in the tabs below. Required Required 2 Required 3 Required 4 Determine the plantwide overhead rate tor Laval using direct labor hours as a base Required 2Explanation / Answer
1. Estimated overhead costs = 350,000+450,000 = 800,000
Estimated direct labor hours = 170,000+375,000 = 545,000 hours
Thus plant wide overhead rate = $800,000/545,000 = $1.47
2.
Calculations: Overhead = (6500+16000)DLH*$1.47 per DLH = 33,027.52
Manufacturing cost per unit = 692,027.52/22,000 = $31.46
3.
Calculations: 2.05 = $350,000/171,000 MH
1.20 = 450,000/375,000
4.
Calculations:
Fabricating overhead = 14,800MH*2.05 per MH
Assembly overhead = 20,100 DLH*$1.20 per DLH
Estimated overhead costs 800,000.00 1.47 per direct labor hour Estimated diect labor hours 545,000.00Related Questions
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