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 hours53,000DLH 52,000DLH Machine hours 33,500MH 4,800MH

Overhead costs $710,000 $540,000

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

Part A27C Part X82B

Number of units10,000units 55,000units

Machine hours

Molding 5,400MH 1,080MH

Trimming 2,400MH 600MH

Direct labor hours

Molding 4,500DLH 2,150DLH

Trimming 700DLH 3,500DLH

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.