Platzer Instruments Inc, makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $107,040. 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: Flutes Clarinets Oboes Budgeted Production Volume Flutes Clarinets Oboes 2,700 units 700 0.8 1.4 1,100 1.2 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate.. per direct labor hour Total Direct Labor Hours Per Unit b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, Total Factory Overhead Cost Per Unit Factory Overhead Cost
Platzer Instruments Inc, makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $107,040. 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: Flutes Clarinets Oboes Budgeted Production Volume Flutes Clarinets Oboes 2,700 units 700 0.8 1.4 1,100 1.2 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate.. per direct labor hour Total Direct Labor Hours Per Unit b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, Total Factory Overhead Cost Per Unit Factory Overhead Cost
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Platzer Instruments Inc, makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $107,040.
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:
Flutes
Clarinets
Oboes
Budgeted
Production
Volume
Flutes
Clarinets
Oboes
2,700 units
700
Total
Direct Labor
Hours Per Unit
1,100
If required, round all per unit answers to the nearest cent.
a. Determine the single plantwide overhead rate.
per direct labor hour
0.8
1.4
1.2
b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products,
Per Unit
Total
Factory Overhead Cost
Factory Overhead Cost
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