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 Unit		Direct Materials Per Unit
Pistons	8,000		0.30		$33		$16
Valves	25,000		0.15		8		3
Cams	1,000		0.20		44		19

The estimated direct labor rate is $19 per direct labor hour.Beginning and ending inventories are negligible and are, thus,assumed to be zero. The budgeted factory overhead for ElliottEngines is $177,800.

If required, round all per unit answers to the nearest cent.

a. Determine the plantwide factory overheadrate.
$ per dlh

b. Determine the factory overhead and directlabor cost per unit for each product.

	Direct Labor Hours Per Unit	Factory Overhead Cost Per Unit	Direct Labor Cost Per Unit
Pistons	dlh	$	$
Valves	dlh	$	$
Cams	dlh	$	$

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c. Use the information above to construct abudgeted gross profit report by product line for the year endedDecember 31, 20Y2. Include the gross profit as a percent of salesin the last line of your report, rounded to one decimal place.Enter all amounts as positive numbers, except for a negative grossprofit/gross profit percentage of sales.

Elliot Engines Inc.
Product Line Budgeted Gross Profit Reports
Forthe Year Ended December 31, 20Y2
	Pistons	Valves	Cams
Revenues	$	$	$
Product Costs
Direct materials	$	$	$
Direct labor
Factory overhead
Total Product Costs	$	$	$
Gross profit	$	$	$
Gross profit percentage of sales	%	%	%