.com/ilr eBook Show Me How Product costs and product profitability reports, using a single plantwide factory overhead rate Kao Engines Inc. produces three products-pistons, valves, and cams-for the heavy equipment industry. Kao Engines' production process uses a single plantwide factory overhead rate based upon direct labor hours to allocate overhead to the three products. The three products for 20Y2 are as follows: Budgeted Volume Direct Labor Price Per Selling Price (Units) Hours Per Unit Unit Per Unit Pistons 7,500 0.40 $12 $40 Valves 16,000 0.50 6 75 Cams 4,000 0.20 20 60 The estimated direct labor rate is $25 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Kao Engines is $377,600. If required, round all per unit answers to the nearest cent. a. Determine the plantwide factory overhead rate. per dih b. Determine the factory pverhead 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 dlh Valves Cams dih 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. Kao Engines Inc. Product Line Budgeted Gross Profit Reports For the Year Ended December 31, 20Y2 Description Revenues Product Costs Direct materials Direct labor Factory overhead Total product costs Gross profit Gross profit percentage of-sales Feedthark Pistons Valves Cams % % %