In its first year of operations, Carla Vista Co. recognized $33,800 in service revenue, $7,400 of which was on account and still outstanding at year-end. The remaining $26,400 was received in cash from customers. The company incurred operating expenses of $19,300. Of these expenses, $12,800 were paid in cash; $6,500 was still owed on account at year-end. In addition, Carla Vista prepaid $3,210 for insurance coverage that would not be used until the second year of operations. Required:
a. Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the accrual basis of accounting.
b. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?

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 22,000 desk lamps produced annually follows.direct materials $280,000direct labor fabricating department (8,000 dlh × $24 per dlh) $192,000assembly department (16,600 dlh × $26 per dlh) $431,600machine hours fabricating department $15,200mhassembly department $20,850mhexpected overhead cost and related data for the two production departments follow.fabricating assemblydirect labor hours 150,000dlh 295,000dlhmachine hours 161,000mh 128,000mhoverhead cost $400,000 430,000required1. 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.