eBook Single Plantwide Factory Overhead Rate Mozart Music Inc. makes three music

Question

eBook Single Plantwide Factory Overhead Rate Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $159,220. Factory 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: Direct Labor Hours Per Unit 0.8 1.5 1.0 Budgeted Production Volume 2,800 units Trumpets Tubas Trombones If required, round all per unit answers to the nearest cent. a. Determine the single plantwide factory overhead rate. 500 1,200 38 per direct labor hour al and per-unit factory overhead allocated to each of the three products. Total Per Unit Factory Overhead Cost Factory Overhead Cost Trumpets Tubas Trombones Total

Explanation / Answer

Budgeted labour hour = (2800*.80+500*1.5+1200*1) = 4190 Hour

a) Plantwide overhead rate = 159220/4190 = 38 per labour hour

b) Calculate following :

Total factory overhead cost Per unit factory overhead cost Trumpets 2800*.80*38 = 85120 30.4 Tubas 500*1.5*38 = 28500 57 Trombones 1200*1*38 = 45600 38 Total 159220

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