! Required information 2 Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below] 43 es 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. Number of Molding Department Units Hours per Unit Part Z Part X Totals 3,000 2.0 MH per unit 4,000 2.5 MH per unit Total Hours Trimming Department Hours per Unit Total Hours 6,000 MH 10,000 MH 16,000 MH 3 DLH per unit 9,000 DLH 4 DLH per unit 16,000 DLH 25,000 DLH Exercise 17-7 (Algo) Plantwide overhead rate LO P1 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. Required 1 Required 2 Compute the plantwide overhead rate using direct labor hours as the allocation base. = 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
2
43
es
!
Required information
Use the following information for the Exercises below. (Algo)
[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.
Number of
Molding Department
Part Z
Units
3,000
Hours per Unit
Total Hours
Trimming Department
Hours per Unit
Total Hours
2.0 MH per unit
Part X
Totals
4,000
2.5 MH per unit
6,000 MH
10,000 MH
16,000 MH
3 DLH per unit
9,000 DLH
4 DLH per unit
16,000 DLH
25,000 DLH
Exercise 17-7 (Algo) Plantwide overhead rate LO P1
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.
Required 1 Required 2
Compute the plantwide overhead rate using direct labor hours as the allocation base.
0
Required 1
Required 2 >
Transcribed Image Text:2 43 es ! Required information Use the following information for the Exercises below. (Algo) [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. Number of Molding Department Part Z Units 3,000 Hours per Unit Total Hours Trimming Department Hours per Unit Total Hours 2.0 MH per unit Part X Totals 4,000 2.5 MH per unit 6,000 MH 10,000 MH 16,000 MH 3 DLH per unit 9,000 DLH 4 DLH per unit 16,000 DLH 25,000 DLH Exercise 17-7 (Algo) Plantwide overhead rate LO P1 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. Required 1 Required 2 Compute the plantwide overhead rate using direct labor hours as the allocation base. 0 Required 1 Required 2 >
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