$37 9 49 Product Costs and Product Profitability Reports, using a Single Plantwide Factory Overhead Rate Elliott Engines Inc. produces three products-pistons, valves, and cams-for the heavy equipment industry, Elliott Engines has a very simple production process and induct line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct labor hours. Information about the three products for 2012 is as follows: Budgeted Volume Direct Labor Price Per Direct Materials (Units) Hours Per Unit Unit Per Unit Distons 10,000 0.20 $18 Valves 21,000 0.15 3 Cams 2,000 0.30 21 The estimated direct labor rate is $21 per direct labor hour, Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Elliott Engines is $138,000 If required, round all per unit answers to the nearest cent Determine the plantwide factory overhead rate per dih b. Determine the factory avertiend and direct labor cost per unit for each product. Direct Labor Factory Overhead Direct Labor Hours Per Unit Cost Per Unit Cost Per Unit Pistons dih Valves dih Direct Labor Factory Overhead Cost Per Unit Direct Labor Cost Per Unit Hours Per Unit Pistons dih Valves dih Cams dih Frick Check My Work a. First calculate Volume x direct labor hours per unit = direct labor hours per product. Add all product hours for total direct labor hours Next Budgeted factory overhead cost total hours = Rate per direct labor hour b. Calculate Factory overhead cost per unit Rate from Reg (a) x Direct bor hours per unit Direct labor cost per unit Direct toboratex Direct labor hours per unit Learning Objective 2 c. Use the information above to construct a budgeted gross profit report by product line for the year ended December 31, 2012. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place. Enter all amounts as positive numbers, except for a negative gross pretit gross profit percentage of sales. c. Use the information above to construct a budgeted gross profit report by product line for the year ended December 31, 2072. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place. Enter all amounts as positive numbers, except for a negative gross profit/gross profit percentage of sales. Elliot Engines Inc. Product Line Budgeted Gross Profit Reports For the Year Ended December 31, 2012 Pistons Valves Cams Product Costs Total Product Costs Gross profit Gross profit percentage of sales