eBook Show Me How Kao Engines Inc. produces three products-pistons, valves, and cams-for the heavy equipment industry. Kao Engines' production process uses single plantwide factory overhead rate based upon direct labor hours to allocate overhead to the three products. The three products for 2012 are as follows: Pistons Budgeted Volume (Units) 7,500 Direct Labor Hours Per Unit Price Per Selling Price Unit Per Unit 0.40 $12 $40 Valves Cams 16,000 0.50 6 4,000 0.20 20 75 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 overhead and direct labor cost per unit for each product. Direct Labor Hours Per Unit Pistons dih Valves Cams Check My Work dih dihi Factory Overhead Cost Per Unit Direct Labor Cost Per Unit Previous Next> e. 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, 2012 Description Revenues Product Costs. Direct materials Direct labor Factory overhead Total product costs Gross profit Gross profit percentage of sales Feedback Pistons Valves Cams Checa My Wik c. Construct your report for each product as Revenues-Direct Materials-Direct Labor-Factory Overhead Gross Profi Revenues Price x Unit Volume Direct Materials Direct Material Cost per Unit x Unit Volume Direct Labor Direct Labor Cost per Unit from Req. (b) x Unit Volume Factory Overhead Factory Overhead Cost per Unit from Req. (b) x Unit Volume