1. Single Plantwide Factory Overhead Rate Kennedy Appliance Inc.s Machining Department incurred $148,500 of factory overhead cost in producing hoses and valves. The two products consumed a total of 4,500 direct machine hours. Of that amount, hoses consumed 2,300 direct machine hours.

Determine the total amount of factory overhead that should be allocated to hoses using machine hours as the allocation base.

2.

Single plantwide factory overhead rate

Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $82,320. 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 Production Volume		Direct Labor Hours Per Unit
Flutes	2,600	units	0.4
Clarinets	500		1.4
Oboes	1,200		1.0

If required, round all per unit answers to the nearest cent.

a. Determine the single plantwide overhead rate. $ per direct labor hour

b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products.

	Total Factory Overhead Cost	Per Unit Factory Overhead Cost
Flutes	$	$
Clarinets
Oboes
Total	$

3.

Single Plantwide Factory Overhead Rate

Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period:

Factory depreciation		$25,116
Indirect labor		62,244
Factory electricity		7,098
Indirect materials		14,742
Selling expenses		34,944
Administrative expenses		19,656
	Total costs	$163,800

Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case:

		Budgeted Volume (Cases)				Processing Hours Per Case
Tortilla chips			4,200			0.10
Potato chips			6,000			0.12
Pretzels			5,400			0.15
	Total		15,600

If required, round all per-case answers to the nearest cent.

a. Determine the single plantwide factory overhead rate. $ per processing hour

b. Use the overhead rate in (a) to determine the amount of total and per-case overhead allocated to each of the three products under generally accepted accounting principles.

	Total Factory Overhead	Per-Case Factory Overhead
Tortilla chips	$	$
Potato chips
Pretzels
Total	$

4.