Departmental overhead rates L.O. P2

Departmental overhead rates L.O. P2

 

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.

 

 

 

Molding Trimming
  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 A27C Part 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
     Molding 5,500  DLH 2,150  DLH
     Trimming 700  DLH 3,500  DLH

 

 

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