Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below.) Textra produces parts for a machine manufacturer Parts go through two departments, Molding and Trimming. The

image text in transcribed
image text in transcribed
[The following information applies to the questions displayed below.) Textra produces parts for a machine manufacturer Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $251,250 in the Molding department and $211,250 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 Molding Department Trimming Department Hours per Unit Total Hours Hours per Unit Total Hours Part 2 3,eee 2.9 MH per unit 6,Bee MH 3 DUH per unit 9,000 DLH 4.ee 2.5 MH per unit 10,000 MH 4 DLM per unit 16,000 DLH Totals 16 , e Mi 25,8ee DLH Units Part X 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: 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 Budgeted machine hours of Budgeted direct labor hours Trimming Budgeted direct labor hours of Remed2 Tax Company manufactures 125 stationary bikes and 150 rowing machines with three activities Activity rates to produce these products follow Activity Activity Rate Assembly $ 34 per direct labor hour Purchasing $ 24 per purchase order Inspection 3 39 per inspection Activity usage for each product follows Compute the overhead cost per unit for the stationary bikes and the rowing machines. (Round Overhead per unit amounts to 2 decimal places.) Activity Usage Stationary Rowing Activity Cost Driver Bikes Machines Direct labor hours 395 585 Purchase orders 31 Inspections 34 35 30 Overhead cost per unit Stationary bikes Activity Cost Pool Activity Usage Assembly 395 Direct labor hours (DLH) Purchasing 31 Purchase orders Inspection 34 inspections Total allocated cost Units produced Overhead cost per unit $ $ $ Activity Rate 34 per DLH 24 per purchase order 39 per inspection Allocated Cost $ 13.430 744 1,320 $ 15,500 $ Overhead cost per unit-Rowing machines Activity Cost Pool Activity Usage Assembly 585 Direct labor hours (DLH) Purchasing 30 Purchase orders Inspection 35 inspections Total allocated cost Units produced Ovochead coat per un Activity Rate 34 per DLH 24 per purchase order 39 per inspection $ $ Allocated Cost $ 19,890 720 1,365 $ 21.075

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: John J. Wild

9th Edition

1260728773, 9781260728774

More Books

Students also viewed these Accounting questions