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Product Costs and Product Profitability Reports, using a single plantide Factory Overhead Rate Elliott Engines Inc. produces three products-pistons, valves and care for the heavy

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Product Costs and Product Profitability Reports, using a single plantide Factory Overhead Rate Elliott Engines Inc. produces three products-pistons, valves and care for the heavy equipment industry. Elliott Engines has a very simple production process and product and wanted factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct taber heurs. Information about the three products for 2012 as follo Budgeted Volume Direct Labor Price Per Direct Materials (Units) Hours Per Unit Unit Per Unit Pistons 12,000 0.30 $32 $15 Valves 26.000 0.15 B 3 Cams 2.000 0.20 42 The estimated direct labor rate is $18 per direct labor hour Beginning and ending inventories are negliable and are, thus, med to be moro. The budgeted factory overhead for Bio Engine 500.000 If required, round all per unit answers to the nearest cant. .. Determine the plantunde factory overhead rate. per dhe b. Determine the factory overhead and direct labor cost per unit for each product. Direct Labor Factory Overhead Direct Labor Hours Per Unit Cost Per Unit Cost Per Unit Pistons 0.3 dlh Valves 0.15 dlh Cams 0.2 dlh 6. Use the information above to construct a budgeted gross profit report by product line for the year anded December 11, 2012. Include the gross profita percent of sales in the lastne of your report rounded to one decimal place inter all amounts as positive numbers. cept for a negative grow profit/gross profit parcentage of Elliot Engines Inc. Product Line Budgeted Gross Profit Reports For the Year Ended December 31, 2012 Pistons Valves Came Revenues Product Costs Direct materials Direct labor Factory overhead Total Product Costs Gross profit Gross profit percentage of sales V tveread Factory overhead cost per unit from Red Unit me Gross profit percentage of sales - Gross profit Sales Leaming di 2 d. What does the reportin (c) indicate to you? Valves have the gross profita percent of sales Valves may require profitability as the other the products price or cost to mandators in order to achieve the Fee

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