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FINANCIAL ACCOUNTING
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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! 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 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
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
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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