Pistons Valves Cams Budgeted Volume (Units) 6,000 13,000 1,000 Direct Labor Hours Per Unit Pistons Valves Cams 0.30 0.50 0.10 Price Per Unit Direct Labor Hours Per Unit dih dlh $40 dih 21 The estimated direct labor rate is $20 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Isaac Engines is $235,200. If required, round all per unit answers to the nearest cent. 55 a. Determine the plantwide factory overhead rate. $ per dlh b. Determine the factory overhead and direct labor cost per unit for each product. Direct Materials Per Unit $9 5 20 Factory Overhead Cost Per Unit Isaac Engines Inc. Product Line Budgeted Gross Profit Direct Labor Cost Per Unit c. Use the information provided to construct a budgeted gross profit report by product line for the year ended December 31, 20Y2. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place.
Pistons Valves Cams Budgeted Volume (Units) 6,000 13,000 1,000 Direct Labor Hours Per Unit Pistons Valves Cams 0.30 0.50 0.10 Price Per Unit Direct Labor Hours Per Unit dih dlh $40 dih 21 The estimated direct labor rate is $20 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Isaac Engines is $235,200. If required, round all per unit answers to the nearest cent. 55 a. Determine the plantwide factory overhead rate. $ per dlh b. Determine the factory overhead and direct labor cost per unit for each product. Direct Materials Per Unit $9 5 20 Factory Overhead Cost Per Unit Isaac Engines Inc. Product Line Budgeted Gross Profit Direct Labor Cost Per Unit c. Use the information provided to construct a budgeted gross profit report by product line for the year ended December 31, 20Y2. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Plant wide overhead rate is simple method of cost allocation. In this method a single rate is uses to allocate overhead to products. This method is useful for small entities.
Plant wide overhead rate is
Total overhead / basis of allocation
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