Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $3,469,400. Factory 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 Volume (in units) per Unit Trumpets 4,000 1.2 Tubas 1,200 0.9 Trombones 2,500 1.3 Required: a. Determine the single plantwide factory overhead rate. b. Use the factory overhead rate in (a) to determine the amount of total and per-unit factory overhead allocated to each of the three products. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $3,469,400. Factory 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 Volume (in units) per Unit Trumpets 4,000 1.2 Tubas 1,200 0.9 Trombones 2,500 1.3 Required: a. Determine the single plantwide factory overhead rate. b. Use the factory overhead rate in (a) to determine the amount of total and per-unit factory overhead allocated to each of the three products. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 2E: Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted...
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Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $3,469,400. Factory 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
|
Volume (in units)
|
per Unit
|
|
Trumpets | 4,000 | 1.2 |
Tubas | 1,200 | 0.9 |
Trombones | 2,500 | 1.3 |
Required: | |
a. | Determine the single plantwide factory overhead rate. |
b. | Use the factory overhead rate in (a) to determine the amount of total and per-unit factory overhead allocated to each of the three products. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. |
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