Question: Bach Instruments Inc makes three musical Instruments: Mutes, clarinets, and oboes. The budgeted factory overhead cost is $112,320 Overhead is allocated to the three products
Bach Instruments Inc makes three musical Instruments: Mutes, clarinets, and oboes. The budgeted factory overhead cost is $112,320 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 Fute 2,200 units 0.6 Clarinets 500 1.5 Oboes 1,200 1.2 If required, round all per unit answers to the nearest cent. a. Determine the single plantwide overhead rate 42 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 Flutes 55,440 x 25.20 X Clarinets 31,500X 63.00 X Oboes 50,620 X 46.20 X Total 137,760 X
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