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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 is
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 Volume Flutes 7,500 units Clarinets 1,500 Oboes 1,200 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. Total Per Unit Factory Overhead Cost Factory Overhead Cost Flutes Clarinets Oboes Total
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