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Product costs and product profitability reports, using a single plantwide factory overhead rate Kao Engines Inc. produces three products-pistons, valves, and cams-for the heavy equipment
Product costs and product profitability reports, using a single plantwide factory overhead rate Kao Engines Inc. produces three products-pistons, valves, and cams-for the heavy equipment industry. Kao Engines' production process uses a single plantwide fac overhead rate based upon direct labor hours to allocate overhead to the three products. The three products for 20 orz are as follaws: The estimated direct abor rate is 525 per direct Lobor heur: Beginning and ending inventorins are negigibie and are, thus, assuated to be aero. The budgeted foctory overhead for Kao Engines is 5377,600. If required, round alf per unit answers to the nearest cent. a. Determine the plantwide factory overhead rate. per aih c. Uve the information provided to construct a budgeted gross profit report by product line for the year ended December 31, 20y2: Include the grass prork as a percent of sales in the last line of your report, rounded to one decimal place. d. What does the report in (c) indicate to rou? Pistons have the gross profit as a percent of wies. Matans mar require a manufacture in arder to achieve a higher prefitability similar to the other two products
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