Chapter 4 E Calculator eBook Single Plantwide Factory Overhead Rate 1. EX.04.01 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 2. EX.04.02 hours. The products have the following budgeted production volume and direct labor hours per unit: Direct Labor Hours Per Budgeted Production 3. EX.04.06 Unit Volume 4. EX.04.11.ALGO Flutes 2,000 units 2.0 1,500 Clarinets 3.0 Oboes 1,750 1.5 a. Determine the single plantwide overhead rate. V per direct labor hour 265 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. Per Unit Total Factory Overhead Cost Factory Overhead Cost Flutes Clarinets Oboes Total Feedback V Check My Work a. First calculate: Budgeted Production Volume x Direct Labor Hours per Unit = Direct Labor Hours per Product. Add all product hours for total direct labor hours. Next: Total Budgeted Factory Overhead + Total Budgeted Plantwide Allocation Base = Single Plantwide Factory Overhead Rate b. Overhead Rate in (a) x Direct Labor Hours for each Product = Overhead for each. Add all overhead amounts to obtain the total. Divide individual overhead amounts by budgeted production volume for each product to obtain overhead per unit. Next> Previous Check My Work Progress: 2/4 items
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 Overhead Rate
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 | $ |
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