Allocate overhead using a single plantwide rate, multiple department rates, and activity-based costing Big Sound Inc. manufactures two products: recelvers and loudspeakers. The factory overhead incurred is as follows: The activity base associated with the two production departments is direct labor hours. The indirect labot can be assigned to two different activities as follows: The activity-base usage quantities and units produced for the two products follow: 7. Comment on the differences in the periunit overhead allocated to each product using the multiple production department factory overthead rate method, and activity-based costing. The plantwide overhead method allocates : of overhead to each product, while the multiple production department method allocates s overhead to receivers and 1 to loudspeaken. Both the plantwide and multiple production department averhead methods distort the allocation of overhesd because they j account for haw each product consumes overheod. In contrast, activity based costing allocates $ of foctory overhead to receivers and 5 to loudspeakers. Activity based costing accurately allocates factory overhead because for how each product consumes overhead. Loudspeakers haye setups than do recelvers, In addition, loudspeakers require quality control inspections than do recelvers. As a resuit, loudspeakers have activity costs than receivers