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Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $247,500 in the Molding department and $207,500 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. Part Z Part X Totals Number of Units 3,000 4,000 Molding 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 Trimming Department Hours per Unit 3 DLH per unit 4 DLH per unit Total Hours 9,000 DLH 16,000 DLH 25,000 DLH Required: 1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead the Trimming department based on direct labor hours.

Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $247,500 in the Molding department and $207,500 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. Part Z Part X Totals Number of Units 3,000 4,000 Molding 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 Trimming Department Hours per Unit 3 DLH per unit 4 DLH per unit Total Hours 9,000 DLH 16,000 DLH 25,000 DLH Required: 1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead the Trimming department based on direct labor hours.

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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Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $247,500 in the Molding department and $207,500 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. Part Z Part X Totals Number of Units 3,000 4,000 Molding Department Required 1 Required 2 Hours per Unit 2.0 MH per unit 2.5 MH per unit Trimming Total Hours 6,000 MH 10,000 MH 16,000 MH Complete this question by entering your answers in the tabs below. Required: 1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate the Trimming department based on direct labor hours. 2. Determine the overhead cost per unit for each part using the departmental rates. Trimming Department Hours per Unit 3 DLH per unit 4 DLH per unit Total Hours 9,000 DLH 16,000 DLH 25,000 DLH Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate for the Trimming department based on direct labor hours. Molding
Transcribed Image Text:Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $247,500 in the Molding department and $207,500 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. Part Z Part X Totals Number of Units 3,000 4,000 Molding Department Required 1 Required 2 Hours per Unit 2.0 MH per unit 2.5 MH per unit Trimming Total Hours 6,000 MH 10,000 MH 16,000 MH Complete this question by entering your answers in the tabs below. Required: 1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate the Trimming department based on direct labor hours. 2. Determine the overhead cost per unit for each part using the departmental rates. Trimming Department Hours per Unit 3 DLH per unit 4 DLH per unit Total Hours 9,000 DLH 16,000 DLH 25,000 DLH Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate for the Trimming department based on direct labor hours. Molding
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