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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 Holding 47,000 DLH 35,500 MH $790,000 Trimming 50,000 DLH 4,800 MH $600,000 Data for two special order parts to be manufactured by the company in this year follow. Part A27C Part X82B 10,200 units 51,500 units Number of units Machine hours Molding 5.200 MH 2.800 MH 1,040 M 700 MH Direct labor hours Molding Teaming 3,500 DLH 1.100 DLH 2,600 DE 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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