ECONOMICS

Exercise 17-6 Part 2

 2 Determine the overhead cost assigned to each product line using the plantwide rate computed in part 1.(Round your intermediate calculations to 2 decimal places. Omit the “\$” sign in your response.)

 Product Overhead cost Part A27C Part X82B

3.

Exercise 17-7 Departmental overhead rates L.O. P2

 Textra Polymers 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 2011 follow.

 Molding Trimming Direct labor hours 52,000 DLH 48,000 DLH Machine hours 30,500 MH 3,600 MH Overhead costs \$ 730,000 \$ 590,000

 Data for two special order parts to be manufactured by the company in 2011 follow:

 Part A27C Part X82B Number of units 9,800 units 54,500 units Machine hours Molding 5,100 MH 1,020 MH Trimming 2,600 MH 650 MH Direct labor hours Molding 5,500 DLH 2,150 DLH Trimming 700 DLH 3,500 DLH

 Required 1. Compute a departmental overhead rate for the molding department based on machine hours and a department overhead rate for the trimming department based on direct labor hours. (Round your answers to 2 decimal places. Omit the “\$” sign in your response.)

 Department Overhead rate Molding Trimming

 2 Determine the total overhead cost assigned to each product line using the departmental overhead rates from requirement 1. (Round your intermediate calculations to 2 decimal places and final answers to whole dollar amount. Omit the “\$” sign in your response.)

 Product Molding Trimming Total overhead cost Part A27C Part X82B

 3 Determine the overhead cost per unit for each product line using the departmental rate.. (Round your answers to 2 decimal places. Omit the “\$” sign in your response.)

 Product Overhead cost Part A27C Part X82B

4.

Exercise 17-9 Using the plantwide Overhead rate to assess prices L.O. A1, P1

 Real Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow.

 Process Activity Overhead Cost Driver Quantity Components Changeover \$ 500,000 Number of batches 800 Machining 279,000 Machine hours 6,000 Setups 225,000 Number of setups 120 \$ 1,004,000 Finishing Welding \$ 180,300 Welding hours 3,000 Inspecting 210,000 Number of inspections 700 Rework 75,000 Rework orders 300 \$ 465,300 Support Purchasing \$ 135,000 Purchase orders 450 Providing space 32,000 Number of units 5,000 Providing utilities 65,000 Number of units 5,000 \$ 232,000

Exercise 17-6 Part 2

 2 Determine the overhead cost assigned to each product line using the plantwide rate computed in part 1.(Round your intermediate calculations to 2 decimal places. Omit the “\$” sign in your response.)

 Product Overhead cost Part A27C Part X82B

3.

Exercise 17-7 Departmental overhead rates L.O. P2

 Textra Polymers 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 2011 follow.

 Molding Trimming Direct labor hours 52,000 DLH 48,000 DLH Machine hours 30,500 MH 3,600 MH Overhead costs \$ 730,000 \$ 590,000

 Data for two special order parts to be manufactured by the company in 2011 follow:

 Part A27C Part X82B Number of units 9,800 units 54,500 units Machine hours Molding 5,100 MH 1,020 MH Trimming 2,600 MH 650 MH Direct labor hours Molding 5,500 DLH 2,150 DLH Trimming 700 DLH 3,500 DLH

 Required 1. Compute a departmental overhead rate for the molding department based on machine hours and a department overhead rate for the trimming department based on direct labor hours. (Round your answers to 2 decimal places. Omit the “\$” sign in your response.)

 Department Overhead rate Molding Trimming

 2 Determine the total overhead cost assigned to each product line using the departmental overhead rates from requirement 1. (Round your intermediate calculations to 2 decimal places and final answers to whole dollar amount. Omit the “\$” sign in your response.)

 Product Molding Trimming Total overhead cost Part A27C Part X82B

 3 Determine the overhead cost per unit for each product line using the departmental rate.. (Round your answers to 2 decimal places. Omit the “\$” sign in your response.)

 Product Overhead cost Part A27C Part X82B

4.

Exercise 17-9 Using the plantwide Overhead rate to assess prices L.O. A1, P1

 Real Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow.

 Process Activity Overhead Cost Driver Quantity Components Changeover \$ 500,000 Number of batches 800 Machining 279,000 Machine hours 6,000 Setups 225,000 Number of setups 120 \$ 1,004,000 Finishing Welding \$ 180,300 Welding hours 3,000 Inspecting 210,000 Number of inspections 700 Rework 75,000 Rework orders 300 \$ 465,300 Support Purchasing \$ 135,000 Purchase orders 450 Providing space 32,000 Number of units 5,000 Providing utilities 65,000 Number of units 5,000 \$ 232,000

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