Financial and Managerial Accounting: E26-2 Sousa Band Instruments Inc. makes three musical

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Financial and Managerial Accounting

Ex26-2 Single Plantwide Factory Overhead Rate
Sousa Band Instruments Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $139,500. Factory 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
Trumpets 1,400 units 0.50
Tubas 400 1.40
Trombones 900 1.10
If required, round all per unit answers to the nearest cent.

a. Determine the single plantwide factory overhead rate.
b. Use the factory overhead rate in (a) to determine the amount of total and per-unit factory overhead allocated to each of the three products.
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