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Exercise 17-7 Departmental overhead rates LO P2 Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two,operations, molding and
Exercise 17-7 Departmental overhead rates LO P2 Textra Plastics 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. (Round "OH rate and cost per unit" answers to 2 decimal places.) Molding 52,000 DLH Direct labor hours Trimming 48,000 DLH Machine hours 30,500 MH Overhead costs $762,000 3,600 MH $622,000. Data for two special-order parts to be manufactured by the company in this year follow. Part A27C Number of units Part X828 9,800 units 54,500 units Machine hours Molding 5,100 MH 1,020 MH Trimming 2,600 MH 650 MH Direct labor hours Molding 5,500 DLH 2,150 DLH Trimming 700 DLH 3,500 DLH 1. Compute a departmental overhead rate for the molding department based on machine hours and a department overhead rate for the trimming department based on direct labor hours. Molding Trimming Direct labor hours 0 0 2. & 3. Determine the total overhead cost assigned to each product line using the departmental overhead rates from requirement 1, and then determine the overhead cost per unit. Part A27C Molding Trimming 0 Activity Driver Departmental OH Rate Total Overhead Cost $ 0 0 Part X82B Activity Driver Departmental OH Rate Total Overhead Cost departmental overhead rates from requirement 1, and then determine the overhead cost per unit. Part A27C Molding Trimming 0 Activity Driver Departmental OH Rate Total Overhead Cost $ Part X82B Molding Trimming Activity Driver Departmental OH Rate 0 Total Overhead Cost $ 0 0 0
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