Required information The following information applies to the questions displayed below.]
Required information The following information applies to the questions displayed below.]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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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 $262,500 in the Molding department and $222,500 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.
Par Z
Part X
Totals
Number of
Units
3,000
4,000
Molding Department
Hours per Unit
2.0
per unit
2.5 MH per unit
Total Hours
6,000 MH
10,000 MH
16,000 MH
Trimming Department
Hours per Unit
3 DLH per unit
4 DLH per unit
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.
Total Hours
9,000 DLI
16,000 DLH
25,000 DLH](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01354a5b-40f6-44c3-bbdd-77fe2239b81b%2F3530675d-2775-4d5a-ab9e-6002f67b4cb2%2Fdtdv2p_processed.png&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 $262,500 in the Molding department and $222,500 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.
Par Z
Part X
Totals
Number of
Units
3,000
4,000
Molding Department
Hours per Unit
2.0
per unit
2.5 MH per unit
Total Hours
6,000 MH
10,000 MH
16,000 MH
Trimming Department
Hours per Unit
3 DLH per unit
4 DLH per unit
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.
Total Hours
9,000 DLI
16,000 DLH
25,000 DLH
Transcribed Image Text: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.
per direct labor hour
$ 262,500
222,500
Budgeted overhead costs
Budgeted overhead costs
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
Determine the overhead cost per unit for each part using the plantwide rate. (Round "OH rate" and "Overhead cost per unit" to 2 decimal
places.)
Part
Required 2
Z
X
Plantwide Overhead Rate
Activity Usage
Overhead cost per unit
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