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Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $242,500 in the Molding
Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $242,500 in the Molding department and $202,500 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual production information follows. Molding Department Number of Units Hours per Unit Part Z Part X Totals 3,000 2.0 MH per unit 4,000 2.5 MH per unit Trimming Department Hours per Unit Total Hours 6,000 MH 10,000 MH 16,000 MH 3 DLH per unit 4 DLH per unit Total Hours 9,000 DLH 16,000 DLH 25,000 DLH Exercise 17-8 (Algo) Departmental overhead rates LO P2 Required: 1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate for the Trimming department based on direct labor hours. 2. Determine the overhead cost per unit for each part using the departmental rates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate for the Trimming department based on direct labor hours. Molding Trimming of Required 1 Required 2 Determine the overhead cost per unit for each part using the departmental rates. (Round "Overhead rate" and "Hours per unit" to 2 decimal places.) Part Z Molding Trimming Total Part X Departmental Overhead Rate Hours per Unit Overhead cost per unit $ 0.00 0.00 Departmental Overhead Rate Hours per Unit Overhead cost per unit Molding Trimming Total $ 0.00 0.00
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