Business, 25.02.2020 17:42 Nadi4753

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 2017 follow. (Round "OH rate and cost per unit" answers to 2 decimal places.)

Molding Trimming
Direct labor hours 52,000 DLH 48,000 DLH
Machine hours 30,500 MH 3,600 MH
Overhead costs $ 730,000 $ 590,000

Data for two special order parts to be manufactured by the company in 2017 follow:

Part A27C Part X82B
Number of units 9,800 units 54,500 units
Machine hours
Molding 5,100 MH 1,020 MH
Trimming 2,600 MH 650 MH
Direct labor hours
Molding 5,500 DLH 2,150 DLH
Trimming 700 DLH 3,500 DLH

1. Compute a departmental overhead rate for the molding department based on machine hours and a department overhead rate for the trimming department based on direct labor hours.

2. & 3. Determine the total overhead cost assigned to each product line using the departmental overhead rates from requirement 1, and then determine the overhead cost per unit.

Answers: 2

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Textra Plastics produces parts for a variety of small machine manufacturers. Most products go throug...

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