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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 52,000 DLH 31,000 MH $810,000 Trimming 50,000 DLH 3,800 MH $ 580,000 Data for two special-order parts to be manufactured by the company in this year follow. Part A270 10,600 units Part X82B 54,000 units Number of units Machine hours Molding Trimming Direct labor hours Molding Trimming 6,200 MH 2,400 MH 1, 240 MH 600 MH 4,500 DLH 1,100 DLH 3,550 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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