<u>Answer:</u>
<u>Determine the plantwide overhead rate for Laval using direct labor hours as a base.
</u>  
1. 
Estimated overhead costs  $800,000  $1.60  per direct labor hour
Estimated direct labor hours  500,000  
2.
 <u>Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.
</u>
Direct Labor - Assembly  $188,500
Direct Labor - Fabricating  395,200
Direct materials  270,000
Overhead  34,720
Total manufacturing costs  888,420
Units produced  22000
Manufacturing cost per unit  40.38
3.  <u>Compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department. </u>
                     Departmental overhead rate  
Fabricating  390000/152000 = 2.57  MH
Assembly  410000/290000 = 1.41  DLH  
4.  <u>Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.  	</u>  
Direct materials                                                         270000  
Direct labor    
Fabricating                                   188500  
Assembly                                   395200  
                                                                                  583700
                                                                                        0
Overhead    
Fabricating (15000*2.57)               38550  
Assembly (15200*1.41)                        21432  
                                                                                        59982
                                                                                             0
Total manufacturing cost                                                  913682
Units produced                                                                    22000
Manufacturing cost per unit                                                41.53  per unit