Question: Platzer Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $129,960. Overhead is allocated to the three products
Platzer Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $129,960. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit:
InstrumentsBudgeted Production VolumeDirect Labor Hours Per UnitFlutes3,100 units0.4Clarinets7001.5Oboes1,2001.1If required, round all per unit answers to the nearest cent.
a. Determine the single plantwide overhead rate. fill in the blank 1 of 1$ 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,
InstrumentsTotal Factory Overhead CostPer Unit Factory Overhead CostFlutesfill in the blank 1 of 7$fill in the blank 2 of 7$Clarinetsfill in the blank 3 of 7fill in the blank 4 of 7Oboesfill in the blank 5 of 7fill in the blank 6 of 7Totalfill in the blank 7 of 7$Step by Step Solution
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