A company produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for this year follow.

Molding Trimming

Direct labor hours47,000DLH 50,000DLH

Machine hours37,000MH 4,900MH

Overhead costs$790,000 $600,000

Data for two special-order parts to be manufactured by the company in this year follow.

Part A27C Part X82B

Number of units 10,800units 51,500units

Machine hours

Molding 5,500MH 1,100MH

Trimming 4,200MH 1,050MH

Direct labor hours

Molding 4,500DLH 2,100 DLH

Trimming 500DLH 2,500DLH

Required:

1.Compute the plantwide overhead rate using direct labor hours as the base.

2.Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1.