Elliott Engines Inc. produces three products—pistons, valves, and cams—for the heavy equipment industry. Elliott Engines

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Elliott Engines Inc. produces three products—pistons, valves,and cams—for the heavy equipment industry. Elliott Engines has avery simple production process and product line and uses a singleplantwide factory overhead rate to allocate overhead to the threeproducts. The factory overhead rate is based on direct labor hours.Information about the three products for 20Y2 is as follows:Budgeted Volume (Units) Direct Labor Hours Per Unit Price Per UnitDirect Materials Per Unit Pistons 6,000 0.30 $40 $20 Valves 21,0000.15 10 3 Cams 3,000 0.20 54 23 The estimated direct labor rate is$23 per direct labor hour. Beginning and ending inventories arenegligible and are, thus, assumed to be zero. The budgeted factoryoverhead for Elliott Engines is $177,600. Question Content Area Ifrequired, round all per unit answers to the nearest cent. a.Determine the plantwide factory overhead rate. $fill in the blank8848da0cd07eff6_1 per dlh b. Determine the factory overhead anddirect labor cost per unit for each product. Direct Labor Hours PerUnit Factory Overhead Cost Per Unit Direct Labor Cost Per UnitPistons fill in the blank 8848da0cd07eff6_2 0.5 dlh $fill in theblank 8848da0cd07eff6_3 12.50 $fill in the blank 8848da0cd07eff6_415 Valves fill in the blank 8848da0cd07eff6_5 dlh $fill in theblank 8848da0cd07eff6_6 $fill in the blank 8848da0cd07eff6_7 Camsfill in the blank 8848da0cd07eff6_8 dlh $fill in the blank8848da0cd07eff6_9 $fill in the blank 8848da0cd07eff6_10 FeedbackArea Feedback a. First calculate: Volume x direct labor hours perunit = direct labor hours per product. Add all product hours fortotal direct labor hours. Next: Budgeted factory overhead cost ÷total hours = Rate per direct labor hour b. Calculate: Factoryoverhead cost per unit = Rate from Req. (a) x Direct labor hoursper unit Direct labor cost per unit = Direct labor rate x Directlabor hours per unit Learning Objective 2. Question Content Area c.Use the information above to construct a budgeted gross profitreport by product line for the year ended December 31, 20Y2.Include the gross profit as a percent of sales in the last line ofyour report, rounded to one decimal place. Enter all amounts aspositive numbers, except for a negative gross profit/gross profitpercentage of sales. Elliot Engines Inc. Product Line BudgetedGross Profit Reports For the Year Ended December 31, 20Y2 PistonsValves Cams $- Select - $- Select - $- Select - Product Costs $-Select - $- Select - $- Select - - Select - - Select - - Select - -Select - - Select - - Select - Total Product Costs $fill in theblank 50b2cf010061071_17 $fill in the blank 50b2cf010061071_18$fill in the blank 50b2cf010061071_19 Gross profit $fill in theblank 50b2cf010061071_20 $fill in the blank 50b2cf010061071_21$fill in the blank 50b2cf010061071_22 Gross profit percentage ofsales fill in the blank 50b2cf010061071_23 % fill in the blank50b2cf010061071_24 % fill in the blank 50b2cf010061071_25 %Feedback Area Feedback c. Construct your report for each productas: Revenues - Direct materials - Direct labor - Factory overhead =Gross profit Revenues = Price x Unit Volume Direct Materials =Direct Material cost per unit x Unit Volume Direct labor = Directlabor cost per unit from Req. (b) x Unit Volume Factory overhead =Factory overhead cost per unit from Req. (b) x Unit Volume Grossprofit percentage of sales = Gross profit ÷ Sales LearningObjective 2. Question Content Area d. What does the report in (c)indicate to you? Valves have the gross profit as a percent ofsales. Valves may require a price or cost to manufacture in orderto achieve the same profitability as the other twoproducts.