Question

Red Apple Enterprises makes parts for various small machine manufacturers. The products go through the molding and trimming processes before they can sent to the customer. The below tables shows the expected costs and activities for both department this year: Direct labor hours Machine hours Overhead costs Molding Trimming 48,000 DLH 50,000 DLH 36,000 MH4 ,400 MH $720,000 $570,000 Below is the information for the special-order parts to be manufactured next year: Part 140C 10,800 units Part 259D 53,000 units Number of units Machine hours Molding Trimming Direct labor hours Molding Trimming 5,300 MH 3,200 MH 1,060 MH 800 MH 4,500 DLH 900 DLH 2,950 DLH 4,500 DLH Required: 1. Compute the plantwide overhead rate using direct labor hours as the base. 2. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the plantwide overhead rate using direct labor hours as the base. Required 1 Required 2 >

Answer 1

Oiven nmtomation Molding torê mming Dinect labowr howrs 48000 50,000 machine hours 36000 ų,400 oVerhead colts 7,20,000 5,70,000 nequired 1r plant uide overhead scebe cuing dinect lalar hours base as the Eitimated over head ot $1290,00O ={13-16 pen direct estimabed dinect labowr 98000 howrs labour hao) required 2 cout assigned to each poroductline the over head amputed Am uing tue plaut uide grete nequeremeut I Plant uide total Activityderiven overhead nate Part OH cost 71,064 5,400 140C 13-16 98,042 |3.16 7,450 259D