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
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 2015 follow. Trimming Molding Direct labor hours 49,000 DLH 48,000 DLH Machine hours Overhead costs 41,000 MH $780,000 4,500 MH $600,000 Data for two special order parts to be manufactured by the company in 2015 follow: Part A27C Part X82B Number of units 10,600 units 51,000 units Machine hours Molding 5,900 MH 1,180 MH Trimming 4,200 MH 1,050 MH Direct labor hours Molding 4,000 DLH 2,400 DLH Trimming 900 DLH 4,500 DLH Required 1. Compute the plantwide overhead rate using direct labor hours as the base. Answer is complete and correct. Estimated overhead costs 14.23 1.380.000 per direct labor hour Estimated direct labor hours 97,000 2. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1. (Round "OH rate" to 2 decimal places.) Answer is complete but not entirely correct. Part A27C X828 Activity Driver Plantwide OH Total Overhead rate Cost 8.700 14.23 123.801 0.0003 14.23 90.187
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