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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. (Round "OH rate and cost per unit" answers to 2 decimal places.) Molding Trimming 48,000 DLH 3,600 MH $630,000 Direct labor hours 52,000 DLH 30,500 MH $770,000 Machine hours Overhead costs Data for two special-order parts to be manufactured by the company in this year follow: Part A27C Part X82B Number of units 9,800 units 54,500 units Machine hours Molding Trimming Direct labor hours Molding Trimming 5,100 MH 1,020 MH 2,600 MH 650 MH 2,150 DLH 3,500 DLH 5,500 DLH 700 DLH 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 2. & 3. Determine the total overhead cost assigned to each product line using the departmental overhead rates from requirement 1, and then determine the overhead cost per unit. Activity Driver Departmental OH Rate Part A27C Total Overhead Cost Molding Trimming Activity Driver Departmental OH Rate Part X82B Total Overhead Cost Molding Trimming
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