Product costs and product profitability reports, using a single plantwide factory overhead rate

Kao Engines Inc. produces three productspistons, valves, and camsfor the heavy equipment industry. Kao Engines production process uses a single plantwide factory overhead rate based upon direct labor hours to allocate overhead to the three products. The three products for 20Y2 are as follows:

Product	Budgeted Volume (Units)	Direct Labor Hours Per Unit	Price Per Unit	Selling Price Per Unit
Pistons	7,500	0.40	$12	$40
Valves	16,000	0.50	6	75
Cams	4,000	0.20	20	60

The estimated direct labor rate is $25 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Kao Engines is $377,600.

Question Content Area

If required, round all per unit answers to the nearest cent.

a. Determine the plantwide factory overhead rate. ANS: 32 PER DIH

b. Determine the factory overhead and direct labor cost per unit for each product.

Product	Direct Labor Hours Per Unit	Factory Overhead Cost Per Unit	Direct Labor Cost Per Unit
Pistons
Valves
Cams

PART B ONLY! THANKS