Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through...
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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 2017 follow.
Molding
Trimming
Direct labor hours
51,000
DLH
50,000
DLH
Machine hours
33,500
MH
4,200
MH
Overhead costs
$
800,000
$
600,000
Data for two special order parts to be manufactured by the company in 2017 follow.
Part A27C
Part X82B
Number of units
10,000
units
54,000
units
Machine hours
Molding
5,300
MH
1,060
MH
Trimming
2,600
MH
650
MH
Direct labor hours
Molding
4,000
DLH
2,450
DLH
Trimming
500
DLH
2,500
DLH
Required1. 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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