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.) Direct labor hours Machine hours Overhead costs Molding 52,000 LH 30,500 $ 730,000 Trimming 48,000 DE 31600 MH $590,000 Data for two special-order parts to be manufactured by the company in this year follow. Part A270 9,800 units Part X82 54,500 unita Number of units Machine hours Molding Tring Direct labor hours Molding Trimming 5,100 MH 2.600 MH 1.020 MM 650 MM 5,500 DLR 700 DLH 2,150 DLH 3, 500 DLR Required: 20 points 1. Compute a departmental overhead rate for the molding department based on machine hours and a department overhead rate for the trimming department based on direct labor hours. Molding Machine hours [$ 30,500 $ 0.04 per machine hour Overhead costs | 730,000 Trimming Direct labor hours $ 48,000 S 0.08 por direct labor hour Overhead costs 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 Book Print References Total Overhead Cost Activity Departmental Driver OHR: 5,1007 0.04 2,600 0. 08 Part A270 Molding Trimming 2. Total Overhead Cost Units Produced $ 2 204 08 412 Activity Driver 5,500 700 Part X620 Molding Trimming 2. Total Overhead Cost Units Produced Departmental OH Rate S 0.04 $ 0.08 Total Overhead Cost $