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 follows: 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: The activity-base usage quantities and units produced for the two products follow: Required: 1. Determine a plantwide overhead rate based upon direct labor hours. Direct labor overhead rate: $ per direct labor hour 1. Determine a plantwide 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. Subassembly and Final Assembly departments, respectively. 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. 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. The plantwide overhead method allocates $ multiple production department overhead methods $ of factory overhead to receivers and $ Loudspeakers have setups than do receivers. In addition, loudspeakers require. setups than do receivers. In addition, loudspeakers require. receivers. of overhead to each product, while the multiple production department method allocates $ overhead to receivers and $ account for how each product consumes overhead. accurately allocates factory overhead because quality control inspections than do receivers. As a result, loudspeakers have to loudspeakers. Both the plantwide and distort the allocation of overhead because they to loudspeakers. Activity-based costing quality control inspections than do receivers. As a result, loudspeakers have In contrast, activity based costing allocates for how each product consumes overhead. activity costs than