Question

Uepa 120H . Direct labor hours Machine hours Overhead costs Molding Trimming 47,000 DLH 54,000 DLH 32,000 MH3,200 MH $740,000 $550,000 Data for two special order parts to be manufactured by the company in 2017 follow. Part A27C Part X82B 10,600 units 52,000 units Number of units Machine hours Molding Trimming Direct labor hours Molding Trimming 6,200 MH 3,200 MH 1,240 MH 800 MH 4,500 DLH 700 DLH 3,050 DLH 3,500 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 requirement 1 Complete this question by entering your answers in the tabs below.

Answer 1

Overhead rate on the basis of Direct Labour Hr
		Molding	Triming	Total
Direct labour Hr		47,000	54,000	1,01,000	b
Overhead cost		7,40,000	5,50,000	12,90,000	a
Overhead rate $/ Hr(a/b)				12.77
Part A27C
Direct Labour	Hr--a	Rate $/Hr-b	Overhead cost$(a*b)
Molding	4500
Triming	700
Total	5200	12.77	66,416
Part X82B
Direct Labour	Hr--a	Rate $/Hr-b	Overhead cost$(a*b)
Molding	3050
Triming	3500
Total	6550	12.77	83,658

		Model 145	Model 212
	Need to calculate Overhead cost Per unit
	Total cost as per Question$		2,28,440
	Total Machine Hr
	Model 145	2300
	Model 212	5400
	Total hr	7700
	Overhead cost / Hr
	Model 145	68,235	($228440/7700*2300)
	Model 212	1,60,205	($228440/7700*5400)
		Model 145	Model 212
	Overhead cost / Hr	68,235	1,60,205
	Number of Unit	1900	3800
Ans 1	OH COST $/ Unit	35.91	42.16
		Model 145	Model 212
	Direct material & Labour cost$ per unt	300	150
	OH COST $/ Unit	35.91	42.16
Ans 2	Total Cost $ Per unit	335.91	192.16
		Model 145	Model 212
	Market price $/unit	753	430
	Total Cost $ Per unit	335.91	192.16
Ans 3	Profit	417.09	237.84