Product costs and Product Profitability Reports, using a Single Plantwide Factory Overhead Rate Elliott Engines Inc. produces three products-pistons, valves, and cams-for the heavy equipment industry, Eliott 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 2012 is as follows: Budgeted Volume Direct Labor Price Per Direct Materials (Units) Unit Per Unit Pistons 12,000 0.20 $18 Valves 22,000 0.15 3 Cams 4,000 0.30 49 21 Hours Per Unit $37 9 The estimated direct labor rate is $21 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Elliott Ensties is $131,100. If required, round all per unit answers to the nearest cent. a. Determine the plantwide factory overhead rate. per dih 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 dih Valves dih Cams dih Check My Work Previous Next eBook b Answered Product Costs and Product Probate Show Me How 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 dih Valves dih Cams dih c. Use the information above to construct a budgeted gross profit report by product line for the year ended December 31, 2012. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place. Enter all amounts as positive numbers, except for a negative gross profit/gross profit percentage of sales. Elliot Engines Inc. Product Line Budgeted Gross Profit Reports For the Year Ended December 31, 20Y2 Pistons Valves Cams Product Costs 3 Total Product Costs Check My Work Previous Next > Email Instructor Save and it Submit Assignment for Grading eBook Show Me How c. Use the information above to construct a budgeted gross profit report by product line for the year ended December 31, 2012. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place. Enter all amounts as positive numbers, except for a negative gross profit/gross profit percentage of sales. Elliot Engines Inc. Product Line Budgeted Gross Profit Reports For the Year Ended December 31, 2012 Pistons Cams Valves Product Costs pooddi goddd Total Product Costs Gross profit %% 9 Gross profit percentage of sales d. What does the report in (c) indicate to you? Valves have the gross profit as a percent of sales. Valves may require a manufacture in order to achieve the same profitability as the other two products, price or cost to Previous Next Check My Work Email Instructor Save and Edit Submit Assignment for Grading