Elliot Engines Inc. produces three products-pistons, valves, and cams-for the heavy equipment industry. Elliott Engines has a very simple production process and product line and uses a single plant wide 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 20Y2 is as follows:

A.) Determine the plantwide factory overhead rate.

B.) Determine the factory overhead and direct labor cost per unit for each product.

C.) Use the information above to construct a budgeted gross profit report by product line for the year ended December 31, 20Y2. Include the gross profit/gross profit percentage of sales.

Elliott Engines Inc. produces three products-pistons, valves, and cams-for the heavy equipment industry. Ellott Engines has a very simple production process and product line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The foctory overhead rate is based on direct labor hours. Information about the three products for 20Y2 is as follows: Budgeted Volume irect Labor Price Per Direct Materials (Units) Hours Per UnitUnit $51 13 68 Per Unit Pistons Valves Cams The estimated direct labor rate is $29 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 $120,000. If required, round all per unit answers to the nearest cent a. Determine the plantwide factory overhead rate. 9,000 22,000 3,000 $25 0.20 0.15 0.30 29 per dih b. Determine the factory overhead and direct labor cost per unit for each product. Factory Overhead Cost Per Unit Direct Labor Direct Labor Cost Per Unit Hours Per Unit dih dlh dlh Pistons Valves Next 2. above to construct a budgeted gross profit report by product line for the year ended December 31, 2012. Indude 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. Elliot Product Line Budgeted Gross Profit Reports Product Costs Total Product Costs