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 line 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: Budgeted Volume (Units) Direct Labor Hours per Unit Price Direct Materials per Unit per Unit Pistons 7.200 0.20 $51.0 $24.5 Valves Cams 27,300 0.15 9.6 42 1,500 0.31 70.0 20.7 The estimated direct labor rate is $18 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 $162,000 Required: a. Determine the plantwide factory overhead rate b. Determine the factory overhead and direct labor cost per unit for each product. If required, round all per-unit answers to the nearest cent 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. Refer to the Nists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading Enter all amounts as positive numbers, except for a negative gross profit/gross profit percentage of sales d. What does the report in (c) indicate to you? Labels and Amount Descriptions Labels December 31, 20Y2 For the Year Ended December 31, 20Y2 Amount Descriptions Cost of goods sold Direct labor Direct materials Factory overhead Gross profit Gross profit percentage of sales Net income (loss) Revenues Sales and administrative expenses Total product costs a. Determine the plantwide factory overhead rate. S per dlh b. Determine the factory overhead and direct labor cost per unit for each product. If required, round all per-unit answers to the nearest cent Factory Overhead. Cost Per Unit Direct Labor Cost Per Unit Pistons $ 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. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Enter all amounts as positive numbers, except for a negative gross profit/gross profit percentage of sales Elliot Engines Inc. Product Line Budgeted Gross Profit Reports (Label) Pistons Valves Cams