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Exercise 17-6 Plantwide overhead rate L.O. P1

[The following information applies to the questions displayed below.]

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.

 

 MoldingTrimming
  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 A27CPart 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        
     Molding5,500 DLH2,150 DLH
     Trimming700 DLH3,500 DLH

 

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