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Exercise 17-7 Departmental overhead rates LO P2 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 coats Molding Trimming 52,000 DLR 48,000 DLR 30,500 MH 3,600 MH $750,000 $610,000 Data for two special-order parts to be manufactured by the company in this year follow: Part A270 Part 2 9,800 units 54,500 units Number of unita Machine hours Molding Trimming Direct labor hours Molding Trimming 5,100 MH 2,600 M 1,020 MB 650 MB 5.500 DLH 700 DLR 2,150 DLR 3,500 DLR 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. Molding Trimming Required: 1. Compute a dopartmental overhead rate for the molding department based on machino hours and a dopartment overhead rate for the trimming dopartment based on direct labor hours. Molding 0 Trimming 0 2. & 3. Determine the total overhead cont assigned to each product line using the departmental overhead ratos from requlrement 1, and then determine the ovorhead cost per unit Part A27c Activity Driver Departmental OH Rate Total Overhead Cost $ 0 Molding Trimming 0 0 Activity Departmental OH Rate Driver Total Overhead Cost Part 828 Molding Trimming 0 OO 0

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