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Single plantwide factory overhead rate Platzer Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $1,874,400. Overhead
Single plantwide factory overhead rate Platzer Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $1,874,400. 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 Unit Flutes Clarinets Oboes Volume 7,500 units 1,500 1,200 2.0 3.0 1.5 a. Determine the single plantwide overhead rate. 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, rounded to the nearest dollar. Total Per Unit Factory Overhead Cost Factory Overhead Cost Flutes x $ x Clarinets Oboes x x x x Total x
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