Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $155,977.50. 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 Direct Labor Hours Volume (in units) per Unit Trumpets 2,090 0.75 Tubas 670 1.65 Trombones 1,230 1.45 Required: a. Determine the single plantwide factory overhead rate. Round your answers to the nearest cent. 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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Round your answers to the nearest cent.
Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $155,977.50. 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 Direct Labor Hours Volume (in units) per Unit Trumpets 2,090 0.75 Tubas 670 1.65 Trombones 1,230 1.45 Required: a. Determine the single plantwide factory overhead rate. Round your answers to the nearest cent. 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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Round your answers to the nearest cent.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 2E: Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted...
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Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones.
| Amount Descriptions | |
| Assembly | |
| Fabrication | |
| Trombones | |
| Trumpets | |
| Tubas | |
| Total |
Transcribed Image Text:Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $155,977.50. 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
Direct Labor Hours
Volume (in units)
per Unit
Trumpets
2,090
0.75
Tubas
670
1.65
Trombones
1,230
1.45
Required:
a. Determine the single plantwide factory overhead rate. Round your answers to the nearest cent.
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.
Refer to the Amount Descriptions list provided for the exact wording of the
wer
hoices for text entries. Round your answers to the nearest
cent.
Transcribed Image Text:a. Determine the single plantwide factory overhead rate. Round your answers to the nearest cent.
$
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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
Round your answers to the nearest cent.
Total Factory
Per Unit Factory
1
Overhead Cost
Overhead Cost
2
3
4
5
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