Determine the amount of total and per-unit factory overhead

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Question

Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $99,600. 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:

Budgeted Production VolumeDirect Labor Hours Per UnitTrumpets1,800units0.4 Tubas400 1.4 Trombones1,100 1.1

If required, round all per unit answers to the nearest cent.

a. Determine the single plantwide factory overhead rate.

$ 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

Factory Overhead CostPer Unit

Factory Overhead CostTrumpets$

Tubas Trombones Total $

Reference no: EM132325845

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