Managerial Accounting 1B
Financial and Managerial Accounting
Chapter 17
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. |
| 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 | ||||
|
|
||||||||
1.Exercise 17-6 Part 1
| Required | |
| 1. | Compute the plantwide overhead rate using direct labor hours as the base. (Round your answer to 2 decimal places. Omit the “$” sign in your response.) |
| Plantwide overhead rate |
rev: 03-04-11
2.
Exercise 17-6 Part 2
| 2. | Determine the overhead cost assigned to each product line using the plantwide rate computed in part 1.(Round your intermediate calculations to 2 decimal places. Omit the “$” sign in your response.) |
| Product | Overhead cost |
| Part A27C | |
| Part X82B | |
|
|
|
Place Your Order Here!