Question

Exercise 17-4 Plantwide overhead rate LO P1 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. Direct labor hours Machine hours Overhead costs Molding 51,080 DLH 38,000 MH $750,000 Trimming 52,200 DLH 4,600 MH $580,000 Data for two special order parts to be manufactured by the company in 2017 follow. Part A27C 10,800 units Part X82B 54,500 units Number of units Machine hours Molding Trimming Direct labor hours Molding Trimming 5,500 MH 3,400 MH 1,100 MH 850 MH 5,000 DLH 500 DLH 2,480 DLH 2,500 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. Required 1 Required 2 Compute the plantwide overhead rate using direct labor hours as the base. Required 1 Required 2 >

Answer 1

overhead rate computation of plant wide using direct labor hoursi- ,000 580,000 Estimated overhead cost → $1;330,000 Estimated direct labor hours 103,000 hours. molding Past A276 [ 51,000] to trimming 52,000. Overhead rate = $1,330,000 103,000 $12.91 per DLH overhead cost assigned caccording to rate computed in requirement li. fact Activity Plantwide utal Overhead Driver OH rate cost A27C 5,500 $12.91 $71,005 182B. 4,900 $12.91 63,259 Direct labor hours X27C = 5,000 + 500 = 5,500 DLH. 882B 2400 + 2500 - 4900 puh.

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