Use the following information for the Exercises below. Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of...

Use the following information for the Exercises below.

Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $243,750 in the Molding department and $203,750 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		Trimming Department
	Number of Units	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.

Extracted text: Determine the overhead cost per unit for each part using the plantwide rate. (Round "Plantwide Overhead Rate" and "Overhead cost per unit" to 2 decimal places.) Part Plantwide Overhead Rate Activity Usage Overhead cost per unit


Extracted text: Compute the plantwide overhead rate using direct labor hours as the allocation base.