Single plantwide factory overhead rate
Bach Instruments Inc. makes three musical instruments: flutes,clarinets, and oboes. The budgeted factory overhead cost is$103,020. Overhead is allocated to the three products on the basisof direct labor hours. The products have the following budgetedproduction volume and direct labor hours per unit:
| Budgeted Production Volume | Direct Labor Hours Per Unit |
| Flutes | 2,000 | units | 0.4 | | |
| Clarinets | 500 | | 1.6 | | |
| Oboes | 1,300 | | 1.1 | | |
If required, round all per unit answers to the nearestcent.
a. Determine the single plantwide overheadrate.
$ per direct labor hour
b. Use the overhead rate in (a) to determinethe amount of total and per-unit overhead allocated to each of thethree products.
| Total
Factory Overhead Cost | Per Unit
Factory Overhead Cost |
| Flutes | $ | $ |
| Clarinets | | |
| Oboes | | |
| Total | $ | |
