Question
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
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 Volume Flutes 2,000 units Clarinets 1,500 Oboes 1,750 Direct Labor Hours Per Unit 2.0 3.0 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. Flutes Clarinets Oboes Total Total Per Unit Factory Overhead Cost Factory Overhead Cost
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