User Account

All Pages

Determine the plantwide overhead rate for Laval

Assignment Help Accounting Basics
Reference no: EM132488687

Question - Assigning overhead costs using the plantwide rate and departmental rate methods

Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped in the fabricating department and assembled in the assembly department. Information related to the 28,000 desk lamps produced annually follows.

Direct materials $270,000

Direct labor

Fabricating department (6,500 DLH x $20 per DLH) $130,000

Assembly department (16,000 DLH * $22 per DLH) $352,000

Machine hours

Fabricating department 15,200 MH

Assembly department 20,850 MH

Expected overhead cost and related data for the two production departments follow.

 

Fabricating

Assembly

Direct labor hours

210,000 DLH

280,000 DLH

Machine hours

168,000 MH

134,000 MH

Overhead cost

$320,000

$435,000

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.

Reference no: EM132488687

Questions Cloud

Calculate the gdp for the scenario : Assuming an economy with no government and no foreign trade, calculate the GDP for the following scenario
Compare and contrast the use of government spending changes : Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy.
Find the long-run growth of physical capital : Find the long-run growth of physical capital, human capital, and output in this economy.
Describe the likely short-run outcome : If the exchange rate is expected to depreciate by 2 percent, which one of the following would describe the likely short-run outcome?
Determine the plantwide overhead rate for Laval : Question - Assigning overhead costs using the plantwide rate and departmental rate methods. Determine the plantwide overhead rate for Laval
What is total factor productivity : As an economist working at the International Monetary Fund, you are given the following data for Japan: observed per capita GDP, relative to the United States
What is the equilibrium rate of interest : Using the data in the table below, answer the following questions. (Hint: draw a graph when possible)
What does ceteris paribus mean in economics : What does ceteris paribus mean in economics? Explain your answer. How do you distinguish a good from a service?
Quantity of output and unemployment in short run : which way would they shift? Show what happen to the price level, the quantity of output and unemployment in short run?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Write down final proposal which must be 3-5 pages in length

the final deliverable for your business capstone project is to prepare a business proposal addressed to your

  Wasson widget company is contemplating the production and

wasson widget company is contemplating the production and sale of a new widget. projected sales are 187500 or 75000

  De anza manufacturing has just hired a new controller diana

de anza manufacturing has just hired a new controller diana deanza. during her first week on the job diana was asked to

  Example of direct labor cost for an airplane manufacturer

The cost of a manufactured product generally consists of which of the following costs?

  Land was acquired in 2013 for a future building site at a

land was acquired in 2013 for a future building site at a cost of 40400. the assessed valuation for tax purposes is

  Optimal capital structure carlisle industries

OPTIMAL CAPITAL STRUCTURE Carlisle Industries is trying to determine its optimal capital structure, which now consists of only common equity. The firm will add debt to its capital structure if it minimizes its WACC, but the firm has no plans to us..

  Alpha centuri corporation has retained earnings

Alpha Centuri Corporation has retained earnings of $3,100,000 on January 1, 2010. During the year, Alpha Centuri earned $1,200,000 of net income.

  Present journal entries to record the issuance of the bonds

Present journal entries to record The issuance of the bonds

  Cutoff values of mutual funds

Mutual funds, once more Based on the model N(0.024, 0.056) for quarterly returns from Exercise 21, what are the cutoff values for the

  Describe the role of financial accounting

Describe the role of financial accounting in contemporary business. Provide one specific, real-life example of how financial accounting helps external.

  Discuss about the leonardo and the renaissance master

Discuss about the Leonardo and the Renaissance Master,"Leonardo, the Renaissance Master" Please respond to the following using sources under the Explore heading

  What would be the capital balances of the remaining partners

If the profits and losses are shared equally, what would be the capital balances of the remaining partners after the retirement of Imelda?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd