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Ch Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $242,500 in the
Ch Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $242,500 in the Molding department and $202,500 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual production information follows. Number of Molding Department Trimming Department Units Hours per Unit Total Hours Hours per Unit Total Hours Part Z 3, 000 2.0 MH per unit 6,000 MH 3 DLH per unit 9, 000 DLH Part X 4,008 2.5 MH per unit 10, 000 MH 4 DLH per unit 16, 000 DLH Totals 16, 000 MH 25, 000 DLH Required: 1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate for the Trimming department based on direct labor hours. 2. Determine the overhead cost per unit for each part using the departmental rates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate for the Trimming department based on direct labor hours. Molding Actual overhead costs $ 15 $ 1.88 : Actual overhead costs 8 Trimming
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