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Single Plantwide Factory Overhead Rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $2,948,125. Overhead is
Single Plantwide Factory Overhead Rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $2,948,125. 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 Direct Labor Hours Per Volume Unit Flutes 2.0 Clarinets 2,000 units 1,500 1,750 3.0 Oboes 1.5 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, rounded to the nearest dollar. Total Per Unit Factory Overhead Cost Factory Overhead Cost Flutes Clarinets Oboes Total 123,000 X Product Costs using Activity Rates Nozama.com Inc, selis consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity, per sales order b. Determine the amount of sales order processing cost associated with 30,000 sales orders
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