Question
! Required information [The following information applies to the questions displayed below.] Textra produces parts for a machine manufacturer. Parts go through two departments,
! Required information [The following information applies to the questions displayed below.] Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $250,000 in the Molding department and $210,000 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 Part Z Part X 3,000 Molding Department Hours per Unit 2.0 MH per unit Total Hours Trimming Department Hours per Unit Total Hours 4,000 2.5 MH per unit Totals 6,000 MH 10,000 MH 16,000 MH 3 DLH per unit 9,000 DLH 4 DLH per unit 16,000 DLH 25,000 DLH Required: 1. Compute the plantwide overhead rate using direct labor hours as the allocation base. 2. Determine the overhead cost per unit for each part using the plantwide rate.
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