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 (Units) Direct Labor Hours Per Unit Price Per Unit Direct Materials Per Unit Pistons 0.50 $45 $8 Valves 5,000 12,500 1,500 0.30 17 Cams 0.20 The estimated direct labor rate is $30 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 $163,750. If required, round all per unit answers to the nearest cent. a. Determine the plantwide factory overhead rate. 25 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 0.5 dlh If required, round all per unit answers to the nearest cent a. Determine the plantwide factory overhead rate 25 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 0.5 dih Valves Cams 0.2 c. Use the information provided to construct a budgeted gross profit report by product line for the year ended December 31, 2012. Indude 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. Orange County Engine Parts Inc. Product Line Budgeted Gross Profit Reports For the Year Ended December 31, 2012 Pistons Valves Cams Revenues $ 225,000 $ 212,500 $ 90,000 Product Costs Direct materials 40,000 37,500 $ 60,000 Direct labor 75,000 112,500 9,000 Factory overhead 62,500 93.750 7,500 Total Product Costs 177.500 243,750 76.500 Gross proft 47.500 13.500 Gross profit percentage of sales