value: 3.00 points Textra Plastics produces parts for a variety of small machine

Question

value: 3.00 points Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for 2015 follow Direct labor hours Machine hours Overhead costs Molding 49,000 DLH 30,500 MH 3 50,000 DLH 3,900 MH $800,000 $570,000 Data for two special order parts to be manufactured by the company in 2015 follow: Part A27C 9,800 units Part X82B 53,000 units Number of units Machine hours 6,000 MH 4,400 MH 1,200 MH Molding Thimming hours 0 1,100 MH 2,250 DLH 5,500 DLH Direct labor hours Molding Trimming 4,000 DLH 1,100 DLH Required 1. Compute the plantwide overhead rate using direct labor hours as the base. 0 Estimated direct labor hours

Explanation / Answer

Answer:1

1. Calculation of the Plantwide overhead rate:

Plantwide overhead rate=Estimated overhead cost/Estimated direct labor hours

=($800000+$570000)/(49000+50000)DLH

=$1370000/99000 DLH

=$13.84 per DLH

Answer:1

2.

Part Activity driver Plantwide OH rate Total overhead cost A27C Molding 4000 13.84 55360 Trimming 1100 13.84 15224 X82B Molding 2250 13.84 31140 Trimming 5500 13.84 76120 177844

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