eBook Show Me How Calculator Elliott Engines Inc. produces three products-pistons, valves, and cams-for the heavy equipment industry. Elliott Engines has a very simple production process and product Ine 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: Direct Labor Hours Per Unit Price Per Unit Direct Materials Per Unit Budgeted Volume (Units) 5,000 12,500 1,500 0.50 Pistons Valves Cams $45 0.30 The estimated direct labor rate is $30 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 $163,750. If required, round all per unit answers to the nearest cent. .. Determine the plantwide factory overhead rate per oth b. Determine the factory overhead 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 eBook Show Me How Calculator Valves Cams 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. Enter all amounts as positive numbers, except for a negative gross profit/gross profit percentage of sales. Orange County Engine Parts Inc. Product Line Budgeted Gross Profit Reports For the Year Ended December 31, 20Y2 Valves Product Costs Total Product Costs Cross profit Gross profit percentage of sales d. What does the report in (c) indicate to you? Valves have the gross prontas a percent of sales, Valves may require a order to achieve the same profitability as the other two products to manufacture in 8 Previous Next