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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 $153,140. Overhead is
Single plantwide factory overhead rate Bach Instruments Inc. makes three musical Instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $153,140. 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 2,700 units 0.5 Clarinets 700 1.6 Oboes 1,300 1.2 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate. 3.1 X 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. Total Per Unit Factory Overhead Cost Factory Overhead Cost Flutes 41,850 X 15.5 X Clarinets 34,720 X 49.6 X Oboes 48,360 X 37.2 X Total $ 124,930 x
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