tPlatzer 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:he two conceptsrelate to one another

Budgeted Production Volume

Direct Labor Hours per Unit

Flutes

$7,500$ units

$2\mathrm{.}0$

Clarinets

$1,500$

$3\mathrm{.}0$

Oboes

$1,200$

$1\mathrm{.}5$

Determine the single plantwide overhead rate.

SHOW ANSWER

Check Figure: $$88$ per direct labor hour

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.