A CH 18 EX 2,3,4,8,10,12,19,20 X Single Plantwide Factory Overhead Rate Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $3,469,400. 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 Production Direct Labor Hours Per Volume Unit Trumpets 4,000 units 1.2 Tubas 1,200 0.9 Trombones 2,500 1.3 a. Determine the single plantwide factory overhead rate. X per direct labor hour $ 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. Total Factory Overhead Cost Per Unit Factory Overhead Cost Trumpets Tubas X Trombones Total Feedback Check My Work a. First calculate: Budgeted production volume x direct labor hours per unit = direct labor hours per product. Add all product hours for total direct labor hours. Next: Total Budgeted Factory Overhead = Total Budgeted Direct Labor Hours - Single Plantwide Factory Overhead Rate b. Rate in (a) x Direct labor hours for each product = Overhead for each. Add all overhead amounts to obtain the total. Divide individual overhead amounts by budgeted production volume for each product to obtain overhead per unit Learning Objective 2