Question

Single plantwide factory overhead rate Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $103,680. 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 hou per unit: Budgeted Production Direct Labor Hours Per Volume Unit Flutes 2,300 units 0.4 Clarinets 400 1.4 Oboes 1,400 1.0 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 Per Unit Factory Overhead Cost Factory Overhead Cost Flutes Clarinets II Oboes Total

Answer 1

D Total direct labor hours per unit 920 А B с 1 a) Budgeted Direct labor hours 2 production 3 Flutes 2,300 0.4 4 Clarinets 400 1.4 5 Oboes 1,400 1.0 6 Total direct labor hours 7 8 Budgted factory overhead $ 103,680 9 Total direct labor hours 2880 10 Plantwide overhead rate $ 36 per direct labor hour 11 560 1400 2880 12 b) Total Factory Per unit Factory Overhead Cost Overhead Cost 13 14 Flutes 15 Clarinets 16 Oboes 17 Total $ $ $ $ 33,120$ 20,160$ 50,400$ 103,680 14.40 50.40 36.00

A B C D 1 a) Budgeted 2 production 3 Flutes 2300 4 Clarinets 400 5 Oboes 1400 6 Total direct labor hours 7 8 Budgted factory overhead 103680 9 Total direct labor hours =+D6 10 Plantwide overhead rate =+B8/B9 11 12 b) Direct labor hours per Total direct labor unit hours 0.4 =+B3*C3 1.4 =+B4*C4 1 =+B5*C5 =+D3+04+05 per direct labor hour Total Factory Overhead Cost Per unit Factory Overhead Cost 13 14 Flutes 15 Clarinets 16 Oboes 17 Total =+B10*D3 =+B10*D4 =+B10*D5 =+B14+B15+B16 =+B14/B3 =+B15/B4 =+B16/B5