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 $245,000 in the Molding department and $205,000 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. The Molding department uses no direct labor hours as it is entirely automated. Actual production information follows. Molding Department Hours per Unit Number of Units Part Z Part X 3,000 2.0 MH per unit 4,000 2.5 MH per unit Totals Total Hours 6,000 MH 10,000 MH 16,000 MH Trinning Department Hours per Unit 3 DLH per unit Total Hours 4 DLH per unit 9,800 DLH 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 S Required 2 >
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 $245,000 in the Molding department and $205,000 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. The Molding department uses no direct labor hours as it is entirely automated. Actual production information follows. Molding Department Hours per Unit Number of Units Part Z Part X 3,000 2.0 MH per unit 4,000 2.5 MH per unit Totals Total Hours 6,000 MH 10,000 MH 16,000 MH Trinning Department Hours per Unit 3 DLH per unit Total Hours 4 DLH per unit 9,800 DLH 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 S Required 2 >
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 14E: Vargas, Inc., produces industrial machinery. Vargas has a machining department and a group of direct...
Related questions
Question
![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 $245,000 in the Molding department and $205,000 in the Trimming department. The
company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. The Molding
department uses no direct labor hours as it is entirely automated. Actual production information follows.
Molding Department
Hours per Unit
Number of
Units
Part Z
Part X
3,000
2.0 MH per unit
4,000
2.5 MH per unit
Totals
Total Hours
6,000 MH
10,000 MH
16,000 MH
Trinning Department
Hours per Unit
3 DLH per unit
Total Hours
4 DLH per unit
9,800 DLH
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 S
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F272dcedc-364b-42f9-b601-b9aca62ddc90%2Fb2f4317a-a9bf-48da-bb5d-0cdc14e6dc50%2Fsjcu4a8_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $245,000 in the Molding department and $205,000 in the Trimming department. The
company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. The Molding
department uses no direct labor hours as it is entirely automated. Actual production information follows.
Molding Department
Hours per Unit
Number of
Units
Part Z
Part X
3,000
2.0 MH per unit
4,000
2.5 MH per unit
Totals
Total Hours
6,000 MH
10,000 MH
16,000 MH
Trinning Department
Hours per Unit
3 DLH per unit
Total Hours
4 DLH per unit
9,800 DLH
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 S
Required 2 >
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