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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 $248,750 in the
Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $248,750 in the Molding department and $208,750 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. Part Z Part X Totals Number of Units 3,000 Molding Department Hours per Unit 2.0 MH per unit 4,000 2.5 MH per unit Total Hours 6,000 MH 10,000 MH 16,000 MH Hours per Unit Trimming Department Total Hours 3 DLH per unit 4 DLH per unit 9,000 DLH 16,000 DLH 25,000 DLH Required: 1. Compute the plantwide overhead rate using direct labor hours as the allocation base. 2. Determine the overhead cost per unit for each part using the plantwide rate. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the plantwide overhead rate using direct labor hours as the allocation base. =
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