Product Costs and Product Profitability Reports, using a Single Plantwide Factory Overhead Rate Isaac Engines Inc. produces three productspistons, valves, and camsfor the heavy equipment industry. Isaac Engines has a very simple production process and product line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct labor hours. Information about the three products for 20Y2 is as follows: Budgeted Volume (Units) Direct Labor Hours Per Unit Price Per Unit Direct Materials Per Unit Pistons 6,000 0.30 $40 $ 9 Valves 13,000 0.50 21 5 Cams 1,000 0.10 55 20 The estimated direct labor rate is $20 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Isaac Engines is $235,200. If required, round all per unit answers to the nearest cent. a. Determine the plantwide factory overhead rate. $fill in the blank 583d6ffab00a044_1 per dlh b. Determine the factory overhead and direct labor cost per unit for each product. Direct Labor Hours Per Unit Factory Overhead Cost Per Unit Direct Labor Cost Per Unit Pistons fill in the blank 583d6ffab00a044_2 dlh $fill in the blank 583d6ffab00a044_3 $fill in the blank 583d6ffab00a044_4 Valves fill in the blank 583d6ffab00a044_5 dlh $fill in the blank 583d6ffab00a044_6 $fill in the blank 583d6ffab00a044_7 Cams fill in the blank 583d6ffab00a044_8 dlh $fill in the blank 583d6ffab00a044_9 $fill in the blank 583d6ffab00a044_10 c. Use the information provided to construct a budgeted gross profit report by product line for the year ended December 31, 20Y2. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place. Isaac Engines Inc. Product Line Budgeted Gross Profit Reports For the Year Ended December 31, 20Y2 Pistons Valves Cams $fill in the blank 06bfb2fa7039f80_2 $fill in the blank 06bfb2fa7039f80_3 $fill in the blank 06bfb2fa7039f80_4 Product Costs $fill in the blank 06bfb2fa7039f80_6 $fill in the blank 06bfb2fa7039f80_7 $fill in the blank 06bfb2fa7039f80_8 fill in the blank 06bfb2fa7039f80_10 fill in the blank 06bfb2fa7039f80_11 fill in the blank 06bfb2fa7039f80_12 fill in the blank 06bfb2fa7039f80_14 fill in the blank 06bfb2fa7039f80_15 fill in the blank 06bfb2fa7039f80_16 Total Product Costs $fill in the blank 06bfb2fa7039f80_17 $fill in the blank 06bfb2fa7039f80_18 $fill in the blank 06bfb2fa7039f80_19 Gross profit (loss) $fill in the blank 06bfb2fa7039f80_20 $fill in the blank 06bfb2fa7039f80_21 $fill in the blank 06bfb2fa7039f80_22 Gross profit percentage of sales fill in the blank 06bfb2fa7039f80_23% fill in the blank 06bfb2fa7039f80_24% fill in the blank 06bfb2fa7039f80_25% d. What does the report in (c) indicate to you? Valves have the gross profit as a percent of sales. Valves may require a price or cost to manufacture in order to achieve a higher profitability similar to the other two products