Allocate overhead using a single plantwide rate, multiple department rates, and activity-based costing Big Sound Inc. manufactures two products: receivers and loudspeakers. The factory overhead incurred is as foliows: The activity base associated with the two production departments is direct labor hours. The indirect labor can be astigned to tuo different activies as feilows: The activity-base usage quantities and units produced for the two products follow: 6. Determine the total and per-unit cost assigned to each product under actlvirvmacan moing. Round the per unit amounts to the nearest whole cent. 1. Comment on the differences in the per-unit overhead allocated to each product using the single plantwide factory overtind rate mothed, the mutipie production department factory overhead rate method, and activity-based costing. The plantwide overhead method allocates is of overhead to each product, while the mutiple production department method alocates s to receivers and 1 to loudspeakers. Both the plantwide and multiple production departmens overhead methads overhead because they account for how each product consumes overhead. In contrast, actwity based costng allocates 1 Ostort the alocation overhead to recelvers and 1 to loudspeakers. Activity-based costing accuretely allocates factory onerhead becave for how each product consumes overhead. Loudspeakers have setups than do cecetverz. In addetien, ioudspeatars require quality control inspections than do rectivers. As a result, loudspeakers have acevicy costs than rectivers. 1. Determine a plantwide overhead rate based upon direct labor hours. Direct labor overhead rote: 5 per direct lobor hour 2. Determine the total and per-unit factory overhead costs allocated to each product, using the plantwide overheod rote in (1), Round per unit amounts to the nearest whole cent. departments, so that the tortal factory overhes rates under the multiple production department rate method. Assume that indirect laber is assoclated with the prod.ction Subassembly and Final Assembly departments; respectiveic. 4. Determine the total and per-unit factory overhead costs allocated to each product, ving the multiple production dupartment overtead rater in (J), Round per unlt amounts to the nearest whole cent. 5. Determine the octivity rates, assuming that the indirect labor is aspociated with actives rather than with the production departments, Round per unit amounts to the nearest whole cent