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. Molding Department Number of Units Hours per Unit Part Z 3,000 2.0 MH per unit Part X 4,000 2.5 MH per unit Totals Trimming Department Hours per Unit Total Hours 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 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 Determine the overhead cost per unit for each part using the plantwide rate. (Round "Plantwide Overhead Rate" and "Overhead cost per unit" 2 decimal places.) Part Z X Plantwide Overhead Rate Activity Usage Overhead cost per unit
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. Molding Department Number of Units Hours per Unit Part Z 3,000 2.0 MH per unit Part X 4,000 2.5 MH per unit Totals Trimming Department Hours per Unit Total Hours 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 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 Determine the overhead cost per unit for each part using the plantwide rate. (Round "Plantwide Overhead Rate" and "Overhead cost per unit" 2 decimal places.) Part Z X Plantwide Overhead Rate Activity Usage Overhead cost per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 107.
![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.
Molding Department
Number of
Units
Hours per Unit
Part Z
3,000
2.0 MH per unit
Part X
4,000
2.5 MH per unit
Totals
Trimming Department
Hours per Unit
Total Hours
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
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
Determine the overhead cost per unit for each part using the plantwide rate. (Round "Plantwide Overhead Rate" and "Overhead cost per unit"
2 decimal places.)
Part
Z
X
Plantwide Overhead Rate
Activity Usage
Overhead cost per unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6bae13c1-b5b6-49dd-84cf-0f92296cae84%2F35779d61-fb27-4c24-a1c6-6a0feede2ed7%2F4de98d_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.
Molding Department
Number of
Units
Hours per Unit
Part Z
3,000
2.0 MH per unit
Part X
4,000
2.5 MH per unit
Totals
Trimming Department
Hours per Unit
Total Hours
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
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
Determine the overhead cost per unit for each part using the plantwide rate. (Round "Plantwide Overhead Rate" and "Overhead cost per unit"
2 decimal places.)
Part
Z
X
Plantwide Overhead Rate
Activity Usage
Overhead cost per unit
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