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-s Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor hours Machine hours Desk lamp Fabricating $ 1,260,000 131,600 DLH 90,000 MH 28,000 DLH 72,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department. Number of Direct Labor Hours Units per Unit 6,000 4 DLH per unit Assembly $ 336,000 Required 1 Required 2 Machine Hours per Unit 3 MH per unit Required: 1. Determine the plantwide overhead rate using 159,600 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. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Assembly Department Direct Labor Hours Machine Hours per per Unit Unit 0.4 MH per unit 2 DLH per unit Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base. < Required 1 Required 2 >

-s Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor hours Machine hours Desk lamp Fabricating $ 1,260,000 131,600 DLH 90,000 MH 28,000 DLH 72,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department. Number of Direct Labor Hours Units per Unit 6,000 4 DLH per unit Assembly $ 336,000 Required 1 Required 2 Machine Hours per Unit 3 MH per unit Required: 1. Determine the plantwide overhead rate using 159,600 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. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Assembly Department Direct Labor Hours Machine Hours per per Unit Unit 0.4 MH per unit 2 DLH per unit Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base. < Required 1 Required 2 >

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 2E: Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted...
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s Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor hours Machine hours Fabricating $ 1,260,000 Desk lamp 131,600 DLH 90,000 MH 28,000 DLH 72,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Number of Direct Labor Hours Units per Unit 6,000 4 DLH per unit Assembly $ 336,000 Machine Hours per Unit 3 MH per unit Required 1 Required 2 Required 3 Required: 1. Determine the plantwide overhead rate using 159,600 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. Complete this question by entering your answers in the tabs below. Assembly Department Direct Labor Hours Machine Hours per per Unit Unit 0.4 MH per unit 2 DLH per unit Required 4 Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base. < Required 1 Required 2 >
Transcribed Image Text:s Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor hours Machine hours Fabricating $ 1,260,000 Desk lamp 131,600 DLH 90,000 MH 28,000 DLH 72,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Number of Direct Labor Hours Units per Unit 6,000 4 DLH per unit Assembly $ 336,000 Machine Hours per Unit 3 MH per unit Required 1 Required 2 Required 3 Required: 1. Determine the plantwide overhead rate using 159,600 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. Complete this question by entering your answers in the tabs below. Assembly Department Direct Labor Hours Machine Hours per per Unit Unit 0.4 MH per unit 2 DLH per unit Required 4 Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base. < Required 1 Required 2 >
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