Question

i need help with this
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 52,000 DLH 30,500 MH $760,000 Trimming 48,000 DLH 3,600 MH $ 620,000 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

Answer

• Requirements asked

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.
Molding
Overhead cost	$760,000	$24.92	per MHs
Machine hours	30,500
Trimming
Overhead cost	$620,000	$12.92	per DLHs
Direct Labor hours	48,000

2. & 3. Determine the total overhead cost assigned to each product line using the departmental overhead rates from requirement 1, and then determine the overhead cost per unit.
Part A27C	Activity Driver	Departmental OH Rate	Total Overhead Cost
Molding	5,100	$24.92	$127,092
Trimming	700	$12.92	$9,044
Total Overheads			$136,136
Total units			9,800
Overhead cost per unit			$13.89
Part X82B	Activity Driver	Departmental OH Rate	Total Overhead Cost
Molding	1,020	$24.92	$25,418
Trimming	3,500	$12.92	$45,220
Total Overheads			$70,638
Total units			54,500
Overhead cost per unit			$1.30