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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 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. Direct labor hours Machine hours Overhead costs Molding 47,000 DLH 34,500 MH $740,000 Trimming 52,000 DLH 3,400 MH $570,000 Data for two special-order parts to be manufactured by the company in this year follow. Part A27C 10,600 units Part X82B 52,000 units Number of units Machine hours Molding Trimming Direct labor hours Molding Trimming 5,300 MH 3,000 MH 1,060 MH 750 MH 3,000 DLH 700 DLH 3,650 DLH 3,500 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. Compute the plantwide overhead rate using direct labor hours as the base. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1. (Round "OH rate" to 2 decimal places.) Part Activity Driver Plantwide OH rate Total Overhead Cost A27C X82B
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