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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
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. Direct labor hours Machine hours Overhead costs Molding 47,000 DLH 36,500 MH $760,000 Trimming 52,000 DLH 4,900 MH $570,000 Data for two special-order parts to be manufactured by the company in this year follow. Part A27C 10,400 units Part X82B 54,000 units Number of units Machine hours Molding Trimming Direct labor hours Molding Trimming 6,200 MH 3,600 MH 1,240 MH 900 MH 4,000 DLH 900 DLH 3,150 DLH 4,500 DLH 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the plantwide overhead rate using direct labor hours as the base. (Required 1 Required 2 >
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