Single Plantwide Factory Overhead Rate Mozart Music Inc. makes three musical ins
ID: 2545286 • Letter: S
Question
Single Plantwide Factory Overhead Rate Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $109,200. 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 Trumpets Tubas Trombones If required, round all per unit answers to the nearest cent. a. Determine the single plantwide factory overhead rate Budgeted Production Volume 3,100 units Direct Labor Hours Per Unit 0.6 1.6 1.1 500 1,400 per direct labor hour b. Use the factory overhead rate in (a) to determine the amount of total and per-unit factory overhead allocated to each of the three products Total Per Unit Factory Overhead Factory Overhead Trumpets Tubas Trombones TotalExplanation / Answer
Total labour hour = (3100*.6+500*1.60+1400*1.1) = 4200 hours
a) Single plantwide overhead rate = 109200/4200 = 26 per hour
b) Calculate factory overhad and per unit overhead :
Total factory overhead Per unit factory overhead Trumpets 3100*.60*26=48360 48360/3100 = 15.60 Tubas 500*1.6*26 = 20800 20800/500 = 41.60 Trombones 1400*1.1*26 = 40040 40040/1400 = 28.60 Total 109200