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 $ 732,000 $592,000 Data for two special-order parts to be manufactured by the company in this year follow: Part A27C 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

Answer 1

1
Molding
Overhead costs	732000	24.00	per machine hour
Machine hours	30,500
Trimming
Overhead costs	592000	12.33	per direct labor hour
Direct labor hours	48,000
2
Part A27C	Activity Driver	Departmental OH Rate	Total Overhead Cost
Molding	5,100	24.00	122400
Trimming	700	12.33	8631
2. Total Overhead Cost			131031
Units Produced			9,800
3. Overhead cost per unit			13.37
Part X82B	Activity Driver	Departmental OH Rate	Total Overhead Cost
Molding	1,020	24.00	24480
Trimming	3500	12.33	43155
2. Total Overhead Cost			67635
Units Produced			54,500
3. Overhead cost per unit			1.24