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 $257,500 in the Molding department and $217,500 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 2 Totals Number of Molding Department Hours per Unit per unit 2.3 per unit Total Hours 30,000 H 16,000 Telesing Department Hours per Unit 3 DLH per unit 400H per unir Total Hours 9,000 DLH 16,000 DLH 25,000 DLH Required: 1. Computea 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 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 $257,500 in the Molding department and $217,500 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 2 Totals Number of Molding Department Hours per Unit per unit 2.3 per unit Total Hours 30,000 H 16,000 Telesing Department Hours per Unit 3 DLH per unit 400H per unir Total Hours 9,000 DLH 16,000 DLH 25,000 DLH Required: 1. Computea 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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