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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.
Molding Trimming
Direct labor hours 44,000 DLH 54,000 DLH
Machine hours 32,500 MH 4,800 MH
Overhead costs $ 800,000 $ 570,000
Data for two special-order parts to be manufactured by the company in this year follow.
Part A27C Part X82B
Number of units 10,800 units 55,500 units
Machine hours
Molding 5,900 MH 1,180 MH
Trimming 3,800 MH 950 MH
Direct labor hours
Molding 3,500 DLH 2,100 DLH
Trimming 300 DLH 1,500 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. 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.
Data for two special-order parts to be manufactured by the company in this year follow.
Required:
Compute the plantwide overhead rate using direct labor hours as the base.
Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1. Compute the plantwide overhead rate using direct labor hours as the base. Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1.(Round "OH
rate" to 2 decimal places.)
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