extra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $246,250 in the Molding department and $206,250 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual production information follows.
extra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $246,250 in the Molding department and $206,250 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual production information follows.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Required information
[The following information applies to the questions displayed below.]
Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The
company budgets overhead cost of $246,250 in the Molding department and $206,250 in the Trimming department. The
company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual
production information follows.
Part Z
Part X
Totals.
Number of
Units
3,000
4,000
Molding Department
Hours per Unit
2.0 MH per unit
2.5 MH per unit.
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Trimming
Total Hours
6,000 MH
10,000 MH
16,000 MH
Required:
1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate for
the Trimming department based on direct labor hours.
2. Determine the overhead cost per unit for each part using the departmental rates.
< Required 1
Trimming Department
Hours per Unit
3 DLH per unit
4 DLH per unit
Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead
rate for the Trimming department based on direct labor hours.
Molding
Total Hours
9,000 DLH
16,000 DLH
25,000 DLH
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fcb2168-4edc-441d-8d35-bd7abdfcf6e5%2F9593af23-6272-4fd1-a681-5e8536cb1226%2Firvb4zoc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The
company budgets overhead cost of $246,250 in the Molding department and $206,250 in the Trimming department. The
company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual
production information follows.
Part Z
Part X
Totals.
Number of
Units
3,000
4,000
Molding Department
Hours per Unit
2.0 MH per unit
2.5 MH per unit.
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Trimming
Total Hours
6,000 MH
10,000 MH
16,000 MH
Required:
1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate for
the Trimming department based on direct labor hours.
2. Determine the overhead cost per unit for each part using the departmental rates.
< Required 1
Trimming Department
Hours per Unit
3 DLH per unit
4 DLH per unit
Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead
rate for the Trimming department based on direct labor hours.
Molding
Total Hours
9,000 DLH
16,000 DLH
25,000 DLH
Required 2 >
Transcribed Image Text:2. Determine the overhead cost per unit for each part using the departmental rates.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the overhead cost per unit for each part using the departmental rates. (Round "Overhead rate" and "Hours per
unit" to 2 decimal places.)
Part Z
Molding
Trimming
Total
Part X
Molding
Trimming
Total
Departmental Overhead Rate
Departmental Overhead
< Required 1
Hours per Unit
Hours per
nit
Required 2
Overhead cost per unit
Overhead cost per unit
>
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