Textra Polymers 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 2011 follow.
| Molding | Trimming |
Direct labor hours | 52,000 DLH | 48,000 DLH |
Machine hours | 30,500 MH | 3,600 MH |
Overhead costs | $730,000 | $590,000 |
Data for two special order parts to be manufactured by the company in 2011 follow:
| Part A27C | Part X82B | |
Number of units | 9,800 | units | 54,500 units |
Machine hours |
|
|
|
Molding | 5,100 | MH | 1,020 MH |
Trimming | 2,600 | MH | 650 MH |
Direct labor hours |
|
|
|
Molding | 5,500 | DLH | 2,150 DLH |
Trimming | 700 | 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.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.