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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

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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 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 DLH 30,500 MM $732,000 Trimming 48,000 DLH 3,600 MH $592,000 11 Data for two special-order parts to be manufactured by the company in this year follow nces Part A270 9,880 units Part X320 54, 5ee units Number of units Machine hours Molding Trimning Direct labor hours Molding Trimning 5,100 MM 2,600 MH 1,020 MM 650 MH 5,500 DLH 700 DLH 2,150 DLH 3,500 DLH Required: 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 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 A270 Activity Driver Departmental OH Rate Total Overhead Coat Molding Trimming 2,688 MH 650 MH Trimming Direct labor hours Molding Trimming 5,500 DLH 700 DLH 2,150 DLH 3,500 DLH Required: 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 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 A270 Activity Driver Departmental OH Rate Total Overhead Cost Molding Trimming Part X82B Activity Driver Departmental OH Rate Total Overhead Cost Molding Trimming

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