Question
Matts Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $188,000. Factory overhead is allocated to the three
Matts Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $188,000. Factory 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 Hours Volume (in units) per Unit Trumpets 2,100 0.8 Tubas 750 1.6 Trombones 1,300 1.4 Required: A. Determine the single plantwide factory overhead rate. B. Use the factory overhead rate in (A) to determine the amount of total and per-unit factory overhead allocated to each of the three products. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. . Determine the single plantwide factory overhead rate. per direct labor hour B. Use the factory overhead rate in (A) to determine the amount of total and per-unit factory overhead allocated to each of the three products. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
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