extra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $263,750 in the Molding department and $223,750 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 Units	Molding Department				Trimming Department
		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	4,000	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.