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
a. Determine the single plantwide overhead rate.
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, rounded to the nearest dollar.
Total
Per Unit
Factory Overhead Cost
Factory Overhead Cost
Flutes
Clarinets
Oboes
Total