Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $104,720. 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 Per Volume Unit Flutes 3,000 units 0.5 Clarinets 400 1.4 Oboes 1,400 1.2 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate. 28 V per direct labor hour 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 Per Unit Factory Overhead Cost Factory Overhead Cost Flutes 42,000 14 Clarinets 15,680 39 Oboes 47,040 34 Total $ 104,720
Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $104,720. 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 Per Volume Unit Flutes 3,000 units 0.5 Clarinets 400 1.4 Oboes 1,400 1.2 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate. 28 V per direct labor hour 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 Per Unit Factory Overhead Cost Factory Overhead Cost Flutes 42,000 14 Clarinets 15,680 39 Oboes 47,040 34 Total $ 104,720
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Single plantwide factory overhead rate
Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $104,720. Overhead is allocated to the three products on the basis of direct labor
hours. The products have the following budgeted production volume and direct labor hours per unit:
Budgeted Production
Direct Labor Hours Per
Volume
Unit
Flutes
3,000 units
0.5
Clarinets
400
1.4
Oboes
1,400
1.2
If required, round all per unit answers to the nearest cent.
a. Determine the single plantwide overhead rate.
2$
28
per direct labor hour
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
Per Unit
Factory Overhead Cost
Factory Overhead Cost
Flutes
$
42,000
$4
14
Clarinets
15,680 V
39
Oboes
47,040 V
34
Total
$ 104,720
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