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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 unit" answers to 2 decimal places.) Molding Trimming Direct labor hours 52,000 DLH 48,000 DLH Machine hours 30,500 MH 3,600 MH Overhead costs $740,000 $ 600,000 Data for two special-order parts to be manufactured by the company in this year follow: Part 1270 Part x828 9,800 units 54,500 units Number of units Machine hours Molding Trimming Direct Labor hours Molding Trimming 5,100 MH 2,600 MH 1,020 MH 650 MH 5,500 DLH 700 DLR 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 0 Machine hours Trimming Overhead costs 0 Direct labor hours 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. Activity Driver Departmental OH Rate Part A27C Molding Trimming 0 Total Overhead Cost $ 0 0 Part X82B Activity Driver Departmental OH Rate Total Overhead Cost $ 0 Molding Trimming 0 0 0
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