Question

Red Apple Enterprises makes parts for various small machine manufacturers. The products go through the molding and trimming processes before they can sent to the customer. The below tables shows the expected costs and activities for both department this year Direct Tabor hours Machine hours Overhead costs 43.000 DLH 48,000 DLH 32. One MH4 , 800 MH $760,000 $610, Bee Below is the information for the special-order parts to be manufactured next year. Part 140c 10.600 units Part 25.90 53, 500 units Number of units Machine hours Molding Trimning Direct labor hours Molding Trimming 5,700 MH -3, 400 MH 1.140 MH 850 MH 4,500 DLH 300 DLH 2,450 DLH 1.500 DLH Required: 1. Compute the plantwide overhead rate using direct labor hours as the base. 2. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement1 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 base.

Answer 1

Plantwide overhead rate = Estimated overhead costs/Direct labor hours

= (760,000+610,000)/(43000+48000)

= $15.05 per hour

Part	Driver	Rate	Cost
140C	4,800.00	15.05	72,240.00
259D	3,950.00	15.05	59,447.50