eBook Show Me How Question Content Area Product Costs and Product Profitability Reports, using a Single Plantwide Factor

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eBook Show Me How Question Content Area Product Costs andProduct Profitability Reports, using a Single Plantwide FactoryOverhead Rate Elliott Engines Inc. produces three products—pistons,valves, and cams—for the heavy equipment industry. Elliott Engineshas a very simple production process and product line and uses asingle plantwide factory overhead rate to allocate overhead to thethree products. The factory overhead rate is based on direct laborhours. 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 overheadand direct labor cost per unit for each product. Direct LaborHours Per Unit Factory Overhead Cost Per Unit Direct Labor Cost PerUnit Pistons fill in the blank 8848da0cd07eff6_2 dlh $fill in theblank 8848da0cd07eff6_3 $fill in the blank 8848da0cd07eff6_4 Valvesfill in the blank 8848da0cd07eff6_5 dlh $fill in the blank8848da0cd07eff6_6 $fill in the blank 8848da0cd07eff6_7 Cams fill inthe blank 8848da0cd07eff6_8 dlh $fill in the blank8848da0cd07eff6_9 $fill in the blank 8848da0cd07eff6_10 QuestionContent Area c. Use the information above to construct a budgetedgross profit report by product line for the year ended December 31,20Y2. Include the gross profit as a percent of sales in the lastline of your report, rounded to one decimal place. Enter allamounts as positive numbers, except for a negative grossprofit/gross profit percentage of sales. Elliot Engines Inc.Product Line Budgeted Gross Profit Reports For the Year EndedDecember 31, 20Y2 Pistons Valves Cams $- Select - $- Select - $-Select - Product Costs $- Select - $- Select - $- Select - - Select- - Select - - Select - - Select - - Select - - Select - TotalProduct Costs $fill in the blank 50b2cf010061071_17 $fill in theblank 50b2cf010061071_18 $fill in the blank 50b2cf010061071_19Gross profit $fill in the blank 50b2cf010061071_20 $fill in theblank 50b2cf010061071_21 $fill in the blank 50b2cf010061071_22Gross profit percentage of sales fill in the blank50b2cf010061071_23 % fill in the blank 50b2cf010061071_24 % fill inthe blank 50b2cf010061071_25 % Question Content Area d. What doesthe report in (c) indicate to you? Valves have the gross profit asa percent of sales. Valves may require a price or cost tomanufacture in order to achieve the same profitability as the othertwo products.