Kao Engines Inc. produces three products—pistons, valves, and cams—for the heavy equipment industry. Kao Engines’ production process uses a single plantwide factory overhead rate based upon direct labor hours to allocate overhead to the three products. The three products for 20Y2 are as follows: Product Budgeted Volume (Units) Direct Labor Hours Per Unit Price Per Unit Selling Price Per Unit Pistons 7,500 0.40 $12 $40 Valves 16,000 0.50 6 75 Cams 4,000 0.20 20 60 The estimated direct labor rate is $25 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Kao Engines is $377,600. Question Content Area If required, round all per unit answers to the nearest cent. a.  Determine the plantwide factory overhead rate. fill in the blank 1 of 1$ per dlh b.  Determine the factory overhead and direct labor cost per unit for each product. Product Direct Labor Hours Per Unit Factory Overhead Cost Per Unit Direct Labor Cost Per Unit Pistons fill in the blank 1 of 9 dlh fill in the blank 2 of 9$ fill in the blank 3 of 9$ Valves fill in the blank 4 of 9 dlh fill in the blank 5 of 9$ fill in the blank 6 of 9$ Cams fill in the blank 7 of 9 dlh fill in the blank 8 of 9$ fill in the blank 9 of 9$   Question Content Area c.  Use the information provided to construct a budgeted gross profit report by product line for the year ended December 31, 20Y2. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place. Kao Engines Inc.Product Line Budgeted Gross Profit ReportsFor the Year Ended December 31, 20Y2 Description Pistons Valves Cams   $- Select - $- Select - $- Select - Product Costs         $- Select - - Select - - Select -   - Select - - Select - - Select -   - Select - - Select - - Select - Total product costs $Total product costs $Total product costs $Total product costs Gross profit $Gross profit $Gross profit $Gross profit Gross profit percentage of sales Gross profit percentage of sales% Gross profit percentage of sales% Gross profit percentage of sales%

Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance Power Indirect labor Rent $86,000 140,000 $0.20 0.45 2.10 35,000 Next year, Palladium expects production to require 88,000 direct labor hours Exercise 9-63 Flexible Budget for Various Levels of Activity Refer to the information for Palladium Inc. above. Required: 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. 2. Prepare an overhead budget that reflects production that is 15% higher than expected and for production that is 15% lower than expected.

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Product Costs and Product Profitability Reports, using a Single Plantwide Factory Overhead Rate Elliott Engines Inc. produces three products—pistons, valves, and cams—for the heavy equipment industry. Elliott Engines has a very simple production process and product line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct labor hours. Information about the three products for 20Y2 is as follows:   Budgeted Volume(Units) Direct LaborHours Per Unit Price PerUnit Direct MaterialsPer Unit Pistons 11,000   0.30   $46   $22   Valves 21,000   0.15   11   4   Cams 2,000   0.20   61   26   The estimated direct labor rate is $26 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Elliott Engines is $191,800. If required, round all per unit answers to the nearest cent. a.  Determine the plantwide factory…

Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment Number of setups Ordering costs Number of orders Machine costs Receiving Direct materials Direct labor Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Units completed Direct labor hours Number of setups Number of orders $627,000 481,000 16,200 6,400 370 5,800 24,900 3,700 The company's normal activity is 7,900 direct labor hours. Machine hours Receiving hours Required: Model A Model B $482,510 372,000 864,000 410,000 Receiving hours Model A Machine hours $ del B Model B Unit Cost $836,000 497,000 8,500 1,500 240 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent. 12,800 18,300 6,300 610 18,600 43,200 10,000 2. Determine the unit cost for…

Gail Cleaners produces a commercial cleaning compound known as Carpex. The direct materials and direct labour standards for one unit of Carpex follow: Direct materials Direct labour Variable overhead Standard Quantity or Hours 4.10 kilograms 0.40 hour 0.40 hour Standard Price or Rate $ 2.20 per kilogram $10.00 per hour $ 1.30 per hour Standard Cost $9.02 4.00 0.52 The budgeted fixed overhead cost is $14,614 per month. The denominator activity level of the allocation base is 800 direct labour- hours. Materials price variance Materials quantity variance During the most recent month, the following activity was recorded: a. 9,900 kilograms of material were purchased at a cost of $2.22 per kilogram. b. A total of 850 hours of direct labour time was recorded at a total labour cost of $9,110. c. The variable overhead cost was $1,580, and the fixed overhead cost was $14,704. Assume that the company produced 1,600 units during the month, using 6,600 kilograms of material in the production…