Solution-Determine the amount of total and per-unit overhead

Determine the amount of total and per-unit overhead

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Reference no: EM132760909

Problem - Single plantwide factory overhead rate - Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $2,948,125. 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 Volume	Direct Labor Hours per Unit
Flutes	2,000 units	2.0
Clarinets	1,500	3.0
Oboes	1,750	1.5

Required -

a. Determine the single plantwide overhead rate.

b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, rounded to the nearest dollar.

Reference no: EM132760909

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Determine the amount of total and per-unit overhead

Reference no: EM132760909

Reference no: EM132760909

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