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ation produces two products, F and G. The indirect labor cost include the following twro items: Plant Supervision Set-up labor (indirect) Total Direct labor $900,000

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ation produces two products, F and G. The indirect labor cost include the following twro items: Plant Supervision Set-up labor (indirect) Total Direct labor $900,000 6000,000 $1,500,000 The foll owing activity-base usage and unit production information is available for the two products: Product F Product CG Total Number of Set-ups 300 100 400 Direct Labor Hours 30,000 30,000 60,000 Units 5,000 5,000 10,000 (a) Determine the single plant wide factory overhead rate, using direct labor hours as the activity base (b) Determine the factory overhead cost per unit for Products F and G, using the single plant wide factory overhead rate (c) Determine the activity rate for plant supervision and setup labor, assuming that the activity base for supervision is direct labor hours and the activity base for setup is number of setups (d) Determine the factory overhead cost per unit for Products F and G, using activity-based costing (e) Why is the factory overhead cost per unit different for the two products under the two methods? Would using a multiple production department overhead rate vield better results

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