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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 2017 follow.

Molding Trimming

Direct labor hours 53,000 DLH 54,000 DLH

Machine hours 38,500 MH 4,800 MH

Overhead costs $ 740,000 $ 610,000

Data for two special order parts to be manufactured by the company in 2017 follow.

Part A27C Part X82B

Number of units 10,000 units 52,000 units

Machine hours

Molding 6,100 MH 1,220 MH

Trimming 4,400 MH 1,100 MH

Direct labor hours

Molding 5,500 DLH 3,200 DLH

Trimming 1,100 DLH 5,500 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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