Single Plantwide Factory Overhead Rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $2,948,125. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Budgeted Production Volume Direct Labor Hours Per Unit Flutes 2,000 units 2.0 Clarinets 1,500 3.0 Oboes 1,750 1.5 a. Determine the single plantwide overhead rate.$ 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, rounded to the nearest dollar. TotalFactory Overhead Cost Per UnitFactory Overhead Cost Flutes $ $ Clarinets Oboes Total $
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Single Plantwide Factory
Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted
| Budgeted Production Volume | Direct Labor Hours Per Unit | ||||
| Flutes | 2,000 | units | 2.0 | ||
| Clarinets | 1,500 | 3.0 | |||
| Oboes | 1,750 | 1.5 |
a. Determine the single plantwide overhead rate.
$ 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, rounded to the nearest dollar.
| Total Factory Overhead Cost |
Per Unit Factory Overhead Cost |
|
| Flutes | $ | $ |
| Clarinets | ||
| Oboes | ||
| Total | $ |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
