5. The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Firebolt: Department Fabrication Department Assembly Department Total Overhead Dollar Amount $550,000 250,000 800,000 Direct labor hours were estimated as follows: Department Fabrication Department Assembly Department Total Direct Labor Hours Direct Labor Hours 5,000 5,000 10,000 In addition, the direct labor hours (dih) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Departments Fabrication Department Assembly Department Total Direct Labor Hours per Unit Gasoline Engine 3.5 dlh 2 5.5 dlh Diesel Engine 2 dlh 3.5 5.5 dlh a. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the single plantwide factory overhead rate method, using direct labor hours as the activity base. b. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the multiple production department factory overhead rate method, using direct labor hours as the activity base for each department. Recommend to management a product costing approach, based on your analyses in (a) and (b). Support your recommendation. C