Textra produces parts for machines through two departments: Molding and Trimming. The Molding department budgets $261,250 in overhead costs and 16,000 machine hours, while the Trimming department budgets $221,250 in overhead and 25,000 direct labor hours. To calculate overhead costs, the question asks us to first determine a plantwide overhead rate using direct labor hours as the allocation base, and then apply that rate to determine the overhead cost per unit for each part.

1. Textra produces parts for a machine manufacturer. Parts go through two departments, Molding
and Trimming. The company budgets overhead cost of $261 , 250 in the Molding department
and $221 , 250 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. Exercise 17-7 (Algo) Plantwide overhead rate LO P1 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. Complete this question by entering
your answers in the tabs below. Compute the plantwide overhead rate using direct labor hours as
the allocation base. 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. Complete this question by entering your answers in the tabs below. 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.)