Budgeted Volume (Units) 6.000 13,000 1.000 Direct Labor Hours Per Unit Unit 0.30 540 Direct Materials Per Unit Cam 0.10 The estimated direct labor rate is $20 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Isaac Engines is $235,200. If required, round all per unit answers to the nearest cent. a. Determine the plantwide factory overhead rate. per dih b. Determine the factory overhead and direct labor cost per unit for each product. Direct Labor Hours Per Unit Factory Overhead Cost Per Unit Direct Labor Cost Per Unit Po Came C. Use the information provided 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. Isaac Engines Inc Product Line Bugeted Gross Profit Reports For the Year Ended December 31, 2012 Product Costa Total Product Costa Gues profeet of sales d. What does the report in (c) indicate to you? Valves have the gross profit as a percent of sales. Valves may require a price or cost to manufacture in order to achieve a higher profitability similar to the other two products