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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
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 unlt" answers to 2 decimal places.) Direct labor hours Machine hours Overhead costs Molding 52,800 DLH 30,508 MH $754, eee Trimming 48,800 DLH 3,600 MH $614, eee Data for two special-order parts to be manufactured by the company in this year follow: Part A270 9,800 units Number of units Machine hours Molding Trimming Direct labor hours Molding Trimming Part X82B 54,500 units 1,820 MH 650 MH 5,108 MH 2,600 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 Overhead costs $ 730,000 s 23.93 per machine hour Machine hours 30.500 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 A27C Activity Driver Departmental OH Rate Total Overhead Cost S 0 Molding Trimming 0 0 Part X82B Activity Driver Departmental OH Rate Total Overhead Cost S Molding Trimming 0 0 0 0
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