Required information [The following information applies to the questions displayed below.] Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $246,250 in the Molding department and $206,250 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. Molding Department Number of Units Hours per Unit Part Z 3,000 2.0 MH per unit Part X 4,000 2.5 MH per unit Totals Trimming Department Hours per Unit Total Hours Total Hours 6,000 MH 10,000 MH 16,000 MH 3 DLH per unit 9,000 DLH 4 DLH per unit 16,000 DLH 25,000 DLH Required: 1. Compute the plantwide overhead rate using direct labor hours as the allocation base. 2. Determine the overhead cost per unit for each part using the plantwide rate. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the overhead cost per unit for each part using the plantwide rate. (Round "Plantwide Overhead Rate" and "Overhead cost per unit" 2 decimal places.) Part Z X Plantwide Overhead Rate Activity Usage Overhead cost per unit
Required information [The following information applies to the questions displayed below.] Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $246,250 in the Molding department and $206,250 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. Molding Department Number of Units Hours per Unit Part Z 3,000 2.0 MH per unit Part X 4,000 2.5 MH per unit Totals Trimming Department Hours per Unit Total Hours Total Hours 6,000 MH 10,000 MH 16,000 MH 3 DLH per unit 9,000 DLH 4 DLH per unit 16,000 DLH 25,000 DLH Required: 1. Compute the plantwide overhead rate using direct labor hours as the allocation base. 2. Determine the overhead cost per unit for each part using the plantwide rate. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the overhead cost per unit for each part using the plantwide rate. (Round "Plantwide Overhead Rate" and "Overhead cost per unit" 2 decimal places.) Part Z X Plantwide Overhead Rate Activity Usage Overhead cost per unit
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3CE: Lansing. Inc., provided the following data for its two producing departments: Machine hours are used...
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