Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $106,500. 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 2,500 units 0.4 Clarinets 800 1.4 Oboes 1,300 1.1 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate. 1,680 x 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 50,400 x 24 x Flutes Clarinets 33,600 42 V Oboes 39,000 x 30 х Total $ 123,000 X
Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $106,500. 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 2,500 units 0.4 Clarinets 800 1.4 Oboes 1,300 1.1 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate. 1,680 x 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 50,400 x 24 x Flutes Clarinets 33,600 42 V Oboes 39,000 x 30 х Total $ 123,000 X
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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