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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets
Number of Units | Molding Department | Trimming Department | |||||||
---|---|---|---|---|---|---|---|---|---|
Hours per Unit | Total Hours | Hours per Unit | Total Hours | ||||||
Part Z | 3,000 | 2.0 | MH per unit | 6,000 | MH | 3 | DLH per unit | 9,000 | DLH |
Part X | 4,000 | 2.5 | MH per unit | 10,000 | MH | 4 | DLH per unit | 16,000 | DLH |
Totals | 16,000 | MH | 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.

Transcribed Image Text:etermine the overhead cost per unit for each part using the plantwide rate. (Round "Plantwide Overhead Rat
decimal places.)
Part
Z
X
Plantwide Overhead Rate
Activity Usage
Required 1
Overhead cost per

Transcribed Image Text:Required 1 Required 2
Compute the plantwide overhead rate using direct labor hours as the allocation base.
Budgeted overhead costs
Budgeted overhead costs
0
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- Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number ofUnits Direct Labor HoursPer Unit Machine HoursPer Unit Rings 1,150 4 8 Dings 2,170 3 11 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $81,300. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $65,800. Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The total factory overhead allocated per unit of Dings is: a.$44.31 b.$6.33 c.$44.82 d.$43.36arrow_forwardRamapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Number of Direct Labor Hours Machine Hours Product Units Per Unit Per Unit Blinks 963 5 7 4 Dinks 1,983 4 8 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $81,600. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $107,600. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is O a. $59.37 Ob. $538.03 Oc. $74.20 Od. $14.50arrow_forwardAleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor HoursPer Unit Machine HoursPer Unit Rings 1,100 2 4 Dings 1,710 5 7 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $83,600. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $67,600. Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The total factory overhead allocated per unit of Rings is a. $67.22 b. $7.69 c. $33.02 d. $53.81arrow_forward
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