Question

eBook Calculator Finne Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, darinets, and oboes. The budgeted factory overhead cost is $101.400. 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 0.5 Rutes 2,800 units 700 1.4 Clarinets 1.0 Oboes 1,000 If required, round all per unit answers to the nearest cent. 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. Total Factory Overhead Cost Per Unit Factory Overhead Cost Flutes Clarinets Oboes Total Previous Check My Work 5 more Check My Work uses remaining a 20

Answer 1

solution; a) plant wide overhead rate= - Budgeted overheads Budgeted labor hours. whole plant- Total budgeted labor hours = 2800X0-5)+(700x1.4)+(1000xI) = 1400t 980+1000 3380 hours Single plantwide overhead Date = 101400 3380 = 30 per lobor hows 16) Total factory overhead cost per unit factory overhead cost 42000 - Flutes 1400x30= 42000 IS 980x 30 = 29400 u2 clarinets 2800 29400 700 300 DO 1000 30000 30 Oboes 2000X30 = Total 101400