Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $250,000 in the Molding department and $210,000 in the Trimming department. The company budgets 16.000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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[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 $250,000 in the Molding department and $210,000 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 Z
Part XI
Totals
Number of
Units
3,000
4,000
Holding Department
Hours per Unit
2.0 MH per unit
2.5 MH per unit
Total Hours
6,000 MH
10,000 MH
16,000 MH
Exercise 17-7 (Algo) Plantwide overhead rate LO P1
Complete this question by entering your answers in the tabs below.
Required 2
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.
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.
Total Hours
9,000 DLH
16,000 DLH
25,000 DLH
4
Transcribed Image Text:[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 $250,000 in the Molding department and $210,000 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 Z Part XI Totals Number of Units 3,000 4,000 Holding Department Hours per Unit 2.0 MH per unit 2.5 MH per unit Total Hours 6,000 MH 10,000 MH 16,000 MH Exercise 17-7 (Algo) Plantwide overhead rate LO P1 Complete this question by entering your answers in the tabs below. Required 2 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. 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. Total Hours 9,000 DLH 16,000 DLH 25,000 DLH 4
Determine the overhead cost per unit for each part using the plantwide rate. (Round "Plantwide Overhead Rate" and "Overhead cost per unit" to
2 decimal places.)
Part
Z
X
Plantwide Overhead Rate
Activity Usage
< Required 1
Bequind 2 >
Overhead cost per unit
Transcribed Image Text:Determine the overhead cost per unit for each part using the plantwide rate. (Round "Plantwide Overhead Rate" and "Overhead cost per unit" to 2 decimal places.) Part Z X Plantwide Overhead Rate Activity Usage < Required 1 Bequind 2 > Overhead cost per unit
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