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Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $132,720. Factory overhead is allocated to the three
Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $132,720. 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 Volume Direct Labor Hours Per Unit Trumpets 3,200 units 0.5 Tubas 400 1.4 Trombones 1,000 1.0 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 42 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. Total Factory Overhead Cost Per Unit Factory Overhead Cost Trumpets 6,400 x 21 Tubas 285 x 58.8 Trombones 1 42 Total 3,160 X
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