Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming....
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Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $ in the Molding department and $ in the Trimming department. The company budgets machine hours MH in Molding and direct labor hours DLH in Trimming. The Molding department uses no direct labor hours as it is entirely automated. Actual production information follows. Number of UnitsMolding DepartmentTrimming DepartmentHours per UnitTotal HoursHours per UnitTotal HoursPart ZMH per unitMHDLH per unitDLHPart XMH per unitMHDLH per unitDLHTotalsMHDLH Required: Compute the plantwide overhead rate using direct labor hours as the allocation base. Determine the overhead cost per unit for each part using the plantwide rate.
Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $ in the Molding department and $ in the Trimming department. The company budgets machine hours MH in Molding and direct labor hours DLH in Trimming. The Molding department uses no direct labor hours as it is entirely automated. Actual production information follows.
Number of UnitsMolding DepartmentTrimming DepartmentHours per UnitTotal HoursHours per UnitTotal HoursPart ZMH per unitMHDLH per unitDLHPart XMH per unitMHDLH per unitDLHTotalsMHDLH
Required:
Compute the plantwide overhead rate using direct labor hours as the allocation base.
Determine the overhead cost per unit for each part using the plantwide rate.
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