Refer to the information in Exercise 17-7.

Data from Exercise 17-7

Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $\$240,000$ in the Molding department and $\$200,000$ in the Trimming department. The company budgets 16,000 machine hours $\left(MH\right)$ in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual production information follows.

Required

1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate for the Trimming department based on direct labor hours.

2. Determine the overhead cost per unit for each part using the departmental rates.

Transcribed Image Text:

Part 2. Part X. Totals. Number of Units 3,000 4,000 Molding Department Hours per Unit 2.0 MH per unit 2.5 MH per unit Total Hours 6,000 MH 10,000 MH 16,000 MH Trimming Department Hours per Unit 3 DLH per unit 4 DLH per unit Total Hours 9,000 DLH 16,000 DLH 25,000 DLH