Question

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 this year follow. (Round "OH rate and cost per unit" answers to 2 decimal places.) Direct labor hours Machine hours Overhead costs Molding Trimming 52,000 DLH 48,000 DLH 30,500 MH3 ,600 MH $768,000 $628,000 Data for two special-order parts to be manufactured by the company in this year follow: Part A270 9,800 units Part X82B 54,500 units Number of units Machine hours Molding Trimming Direct labor hours Molding Trimming 5,100 MH 2,600 MH 1,020 MH 650 MH 5,500 DLH 700 DLH 2,150 DLH 3,500 DLH Required: 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.

Answer 1

Solution:

No 92 AK SK 94 96 $25.18 768000 30500 $13.08 628000) 48000 Activity Driver Activity rate Total Overhead cost 93 Activity based costing 95 Molding Overhead Cost 97 Machine hours 98 Trimming 99 Overhead Cost 100 Direct labor hours 101 102 Overhead Assigned 103 Product A270 104 Molding Trimming 106 Total 107 Units 108 OH per unit 109 110 X82B 111 Molding 112 Trimming 113 Total 114 units 115 OH per unit 5100 700 $25.18 $13.08 105 128418 9156 137574 9800 14.04 1020 $25.18 $13.08 3500 25683.6 45780 71464 54500 1.31 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 319 (5) Sheet723 ) Sheet724 Sheet725 Sheet279 (3)