Budgeted Production Volume Direct Labor Hours per Unit Flutes 2000 units 2.0 Clarinets 1,500 3.0 Oboes 1,750 1.5

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter8: Budgets And Bank Reconciliations
Section: Chapter Questions
Problem 1.5C
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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:

a. Determine the single plant wide 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

Budgeted
Production Volume
Direct Labor Hours
per Unit
Flutes
2000 units
2.0
Clarinets
1,500
3.0
Oboes
1,750
1.5
Transcribed Image Text:Budgeted Production Volume Direct Labor Hours per Unit Flutes 2000 units 2.0 Clarinets 1,500 3.0 Oboes 1,750 1.5
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