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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 $$240,000$ in the Molding department and $$200,000$ 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.

Number of Units Molding Department Trimming Department

Hours per Unit Total Hours Hours per Unit Total Hours

Part Z $3,0002\mathrm{.}0$ MH per unit $6,000$ MH $3$ DLH per unit $9,000$ DLH

Part X $4,0002\mathrm{.}5$ MH per unit $10,000$ MH $4$ DLH per unit $16,000$ DLH

Totals $16,000$ MH $25,000$ DLH

Exercise $17-8($Static$)$ Departmental overhead rates LO P$2$

Required:

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.

Determine the overhead cost per unit for each part using the departmental rates.