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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 Machine hours Overhead costs Molding 51,000 DLH 38,500 MH $810,000 Trimming 50,000 DLH 4,700 MH $550,000 Data for two special-order parts to be manufactured by the company in this year follow. Machine hours Number of units Molding Part X82B 53,000 units. 1,020 MH Part A27C 10,800 units 5,100 MH Trimming 3,200 MH 800 MH Direct labor hours Molding Trimming 5,000 DLH 300 DLH 2,350 DLH 1,500 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the plantwide overhead rate using direct labor hours as the base.
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