Single plantwide factory overhead rate OBJ. 2 Matts Music Inc. makes three musical instruments: trumpets, tubas, and
Question:
Single plantwide factory overhead rate OBJ. 2 Matt’s Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $188,000. Factory overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit:
Budgeted Direct Labor Hours Production Volume per Unit Trumpets 2,100 units 0.8 Tubas 750 1.6 Trombones 1,300 1.4
a. Determine the single plantwide factory overhead rate.
b. Use the factory overhead rate in
(a) to determine the amount of total and per-unit factory overhead allocated to each of the three products.
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781305267831,9781305267848
13th Edition
Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac