60.1K

Verified Solution

Link Copied!

Textra produces parts for a machine manufacturer. Parts go through two departments, Moiding and Trimming. The company budgets overhead cost of $261,250 in the Molding department and $221,250 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DL.H) in Trimming. Actual production information follows. Required: 1. Compute the plantwide overhead rate using direct labor hours as the allocation base. 2. Determine the overhead cost per unit for each part using the plantwide rate. Complete this question by entering your answers in the tabs below. Compute the plantwide overhead rate using direct labor hours as the allocation base. Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $261,250 in the Molding department and $221,250 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DL.H) in Trimming. Actual production information follows, Required: 1. Compute the plantwide overhead rate using direct labor hours as the allocation base. 2. Detormine the overhead cost per unit for each part using the plantwide rate. Complete this question by entering your answers in the tabs below. Determine the overhead cost per unit for each part using the plantwide rate. (Round 'Prantwide Overhead Rate' and "Overhead cost p 2 decimal places

Answer & Explanation Solved by verified expert

See Answer