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Business, 03.05.2021 14:30 zaiibaii

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. Molding Trimming Direct labor hours 52,000 DLH 48,000 DLH Machine hours 32,500 MH 4,500 MH Overhead costs $ 790,000 $ 580,000 Data for two special-order parts to be manufactured by the company in this year follow. Part A27C Part X82B Number of units 10,200 units 53,000 units Machine hours Molding 5,900 MH 1,180 MH Trimming 4,400 MH 1,100 MH Direct labor hours Molding 4,500 DLH 2,450 DLH Trimming 900 DLH 4,500 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.

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