Question
Single plantwide factory overhead rate Platzer Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $119,680. Overhead is
Single plantwide factory overhead rate
Platzer Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $119,680. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit:
Instruments | Budgeted Production Volume | Direct Labor Hours Per Unit |
---|---|---|
Flutes | 2,300 units | 0.6 |
Clarinets | 900 | 1.4 |
Oboes | 1,000 | 1.1 |
If required, round all per unit answers to the nearest cent.
a. Determine the single plantwide overhead rate. fill in the blank 1 of 1$ 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,
Instruments | Total Factory Overhead Cost | Per Unit Factory Overhead Cost |
---|---|---|
Flutes | fill in the blank | fill in the blank |
Clarinets | fill in the blank | fill in the blank |
Oboes | fill in the blank | fill in the blank |
Total | fill in the blank |
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