Question: textra plastics produces parts for a variety of small machine...
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 2017 follow.
|Direct labor hours||42,000||DLH||52,000||DLH|
Data for two special order parts to be manufactured by the company in 2017 follow.
|Part A27C||Part X82B|
|Number of units||11,000||units||51,500||units|
|Direct labor hours|
1. Compute the plantwide overhead rate using direct labor hours as the base.
2. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1.