Allocating Overhead: Plantwide & Departmental Rates for Lighting

Exercise 4-9 (Algo) Allocating overhead using plantwide rate and departmental rates LO P1, P2 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 $ 996,000 $ 140.000 Direct labor hours 270,000 DLH 14.0% DLH Machine hours 33,000 MH 65.5% MH Laval reports the following for one of its products. a desk lamp. Fabricating Department Assembly Department Number of Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per Units per Unit Unit per Unit Unit Desk lamp 5,000 3 DLH per unit ZMH per unit 1 DLH per unit 0.4MH per unit Required: 1. Determine the plantwide overhead rate using 284.000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute departmental Overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department. Budgeted overhead costs $ 996,000 Budgeted overhead costs $ 140,000 m per direct labor hour