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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
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. Direct labor hours Bachine hours Overhead costs Molding 52,000 DLH 38,000 MH $790,000 Trimming 48,000 DLH 4,200 MH $570,000 Data for two special-order parts to be manufactured by the company in this year follow. Number of units Part A27C 11,000 units Part X828 55,500 units 1,060 MH 600 MH Machine hours Molding 5,300 MH Trimming 2,400 MH Direct labor hours Molding Trimming 3,000 DLH 500 DLH 2,650 DLH 2,500 DLH Required: 1. Compute the plantwide overhead rate using direct labor hours as the base. 2. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1.
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