Please give me step by step directions on how to get the correct answer? Ch 26 pro. 1 Single Plantwide Factory Overhead Rate Matt's Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $188,000. 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 Volume Direct Labor Hours Per Unit Trumpets 2,100 units 0.8 Tubas 750 1.6 Trombones 1,300 1.4 a. Determine the single plantwide factory overhead rate. Note: Round amount to the nearest whole dollar. Use this amount in subsequent computations, if applicable. $ per direct labor hour 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. TotalFactory Overhead Per UnitFactory Overhead Trumpets $ $ Tubas Trombones Total $
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Ch 26 pro. 1
Single Plantwide Factory
Matt's Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted
| Budgeted Production Volume | Direct Labor Hours Per Unit | ||||
| Trumpets | 2,100 | units | 0.8 | ||
| Tubas | 750 | 1.6 | |||
| Trombones | 1,300 | 1.4 |
a. Determine the single plantwide factory overhead rate.
Note: Round amount to the nearest whole dollar. Use this amount in subsequent computations, if applicable.
$ per direct labor hour
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.
| Total Factory Overhead |
Per Unit Factory Overhead |
|
| Trumpets | $ | $ |
| Tubas | ||
| Trombones | ||
| Total | $ |
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