Required information

Use the following information for the Exercises below. $($Algo$)$

$[$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 $$258,750$ in the Molding department and $$218,750$ 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.

Exercise $17-7($Algo$)$ Plantwide overhead rate LO P$1$

Required:

Compute the plantwide overhead rate using direct labor hours as the allocation base.

Determine the overhead cost per unit for each part using the plantwide rate.

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Required $2$

Compute the plantwide overhead rate using direct labor hours as the allocation base.