Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 $760,000 $620,000 Data for two special-order parts to be manufactured by the company in this year follow: nces Number of units Machine hours Molding Trinning Direct labor hours Molding Trimming Part A270 Part X828 9,800 units 54,500 units 5,100 MH 1,020 MH 2,600 MH 650 MM 5,508 DLH 700 DLH 2,150 DLH 3,500 DLH 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 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 Molding Trimming Part X82B Activity Driver Departmental OH Rate Total Overhead Cost Molding Trimming
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started