FINANCE

Required
1. Compute the plantwide overhead rate using direct labor hours as the base. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

 

  Plantwide overhead rate

rev: 03-04-11

2.

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.

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