Allocate overhead using a single plantwide rate, multiple department rates, and activity-based costing Downhill Sports Inc. manufactures two products: snowboards and skis. The factory overhead incurred is as follows: Indirect labor Cutting Department $360,000 250,000 560,000 Finishing Department Total $1,170,000 The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: Activity Budgeted Activity Cost Activity Base Production control Materials handling Total $90,000 270,000 $360,000 Number of production runs Number of moves The activity-base usage quantities and units produced for the two products follow: Number of Production Runs Number of Direct Labor Hours- Moves Cutting Direct Labor Hours- Finishing Units Produced Snowboards 450 5,000 2,000 4,000 5,000 Skis 50 2,500 3,000 3,000 5,000 Total 500 7,500 5,000 7,000 10,000 1. Determine a single plantwide factory overhead rate based upon direct labor hours Direct labor overhead rate: $ per direct labor hour 2. Determine the total and per-unit factory overhead costs allocated to each product, using the plantwide overhead rate in (1). Round per unit amounts to the nearest whole cent. Total Factory Overhead Product Snowboards Skis Factory Overhead Per Unit 3. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $435,000 and $735,000 for the Cutting and Finishing departments, respectively. Round per unit amounts to the nearest whole cent. Department Cutting Department Finishing Department Production Department Rate per direct labor hour per direct labor hour 4. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (3). Round per unit amounts to the nearest whole cent. Total Factory Overhead Factory Overhead Per Unit Product Snowboards Skis 5. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Round per unit amounts to the nearest whole cent. Activity Production Control Activity Rate per prod.run Material Handling Cutting Department Finishing Department per move per di perdh 6. Determine the total and per-unt cost assigned to each product under activity-based costing. Round the per unit amounts to the nearest whole cent. Product Snowboards Total Activity Cost Activity Cost Per Unit 6. Determine the total and per-unit cost assigned to each product under activity-based costing. Round the per unit amounts to the nearest whole cent. Product Snowboards Total Activity Cost Activity Cost Per Unit 7. Comment on the differences in the per-unit overhead allocated to each product using the single plantwide factory overhead rate method, the multiple production department factory overhead rate method, and activity-based costing The plantwide overhead method allocates s of overhead to each product, while the multiple production department method allocates s Both the plantwide and multiple production department methods L distort the allocation of overhead because they contrast, activity-based costing allocates s of factory overhead to snowboards and s for how each product consumes overhead. Snowboards consume) addon, snowboards consume variety of styles. Thus, snowboards have overhead to snowboards and to skla account for how each product consumes overhead. In accurately allocates factory overhead because to skis. Activity based costing U direct labor hours in the Finishing Department, which has production contral and materials handling overhead than do skis. This is because showboards are made in, activity costs than skis overhead. In lots, representing a