Question
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. (Round "OH rate and cost per unit" answers to 2 decimal places.) Direct labor hours Machine hours Molding 52,000 DLH 30,500 MH Overhead costs $768,000 Trimming 48,000 DLH 3,600 MH $628,000 Data for two special-order parts to be manufactured by the company in this year follow: Number of units Part A27C 9,800 units Part X82B 54,500 units Machine hours Molding 5,100 MH Trimming Molding 2,600 MH 1,020 MH 650 MH Direct labor hours 5,500 DLH Trimming 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 Trimming 0 0 the total overhead cost assigned to each product line using the
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