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Single plantwide factory overhead rate

Platzer Instruments Inc. makes three musical Instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $$1,874,400.$ 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

Volume

Hours Per Unit

Flutes

$7,500$ units

$2\mathrm{.}0$

arinets

$1,500$

$3\mathrm{.}0$

boes

$1,200$

$1\mathrm{.}5$

a$.$ Determine the single plantwide overhead rate.

$ per direct labor hour

b$.$ Use the overhead rate in $($a$)$ to determine the amount of total and per$-$unit overhead allocated to each of the three products, roundec to the nearest dollar.

Total

Per Unit

Factory Overhead Cost

Factory Overhead Cost

Flutes

Clarinets

Oboes

Total