Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $129,200, Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Budgeted Production Flutes Clarinets Oboes Volume 2,600 units 600 1,200 Direct Labor Hours Per Unit 0.5 1.5 1.0 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate. per direct labor hour b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products. Per Unit Total Factory Overhead Cost Factory Overhead Cost Flutes Clarinets Oboes Total Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity Casting Assembly Inspecting Setup Budgeted Activity Cost Activity Base $259,560 Machine hours 190,260 Direct labor hours 39,000 Number of inspections 57,350 44,440 Number of setups Number of loads Materials handling. Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 4,910 4,360 9,270 Direct labor hours 4,230 6,340 10,570 Number of inspections 1.980 620 2,600 Number of setups: 300 70 370 Number of loads Units produced 800 9,800 210 1,010 4,900 14,700 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Machine hours 4,910 4,360 9,270 Direct labor hours 4,230 6,340 10,570 Number of inspections 1,980 620 2,600 Number of setups 300 70 370 Number of loads 800 210 1,010 Units produced 9,800 4,900 14,700 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Casting Assembly Inspecting Setup Materials handling Activity Rate per machine hour per direct labor hour per inspection per setup per load b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent. Product Entry Lighting Fixtures Dining Room Lighting Fixtures Total Activity Cost Activity Cost Per Unit - Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead Cut and Sew Department overhead Total $115,900 194,400 $310,300 The direct labor estimated for each production department was as follows: Pattern Department Cut and Sew Department Total 1,900 direct labor hours 2,400 4,300 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Small Glove Medium Glove Large Glove Production Departments Pattern Department Cut and Sew Department Direct labor hours per unit 0.04 0.05 0.06 0.07 0.09 0.11 0.11 0.14 0.17 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates The direct labor estimated for each production department was as follows: Pattern Department 1,900 direct labor hours Cut and Sew Department 2,400 Total 4,300 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Production Departments. Small Glove Medium Glove Large Glove Pattern Department 0.04 0.05 0.06 Cut and Sew Department 0.07 0.09 0.11 Direct labor hours per unit 0.11 0.14 0.17 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Pattern Department Cut and Sew Department per dih per dih b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. Small glove per unit Medium glove Large glove per unit per unit