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. Elliott 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) Hours Per Unit Unit Per Unit Pistons 9,000 0.30 $51 $25 Valves 28,000 0.15 Cams 2.000 0.20 The estimated direct labor rate is $29 per direct labor hour Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Elliott Engines is $226,300. If required, round all per unit answers to the nearest cent .. Determine the plantwide factory overhead rate per din 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 Valves Cams 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 Revenues Product Costs Direct materials Direct labor Factory overhead Total Product Costs Gross profit Gross profit percentage of sales d. What does the report in (c) indicate to you? Valves have the lowest gross profit as a percent of sales, Valves may require a higher profitability as the other two products. price or lower cost to manufacture in order to achieve the same