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DOK Single Pantwide and Multiple Production Department Factory Overhead Rate Methoded Product Cortisti The management of Nova Industries Inc. manufactures in and die engines through
DOK Single Pantwide and Multiple Production Department Factory Overhead Rate Methoded Product Cortisti The management of Nova Industries Inc. manufactures in and die engines through we production entre accurate product cost information in order to guide product strategy Presently, the coming baciary at fortret to the two products. However, management is considering the multiple production department factory overhead to the future budgeted for Nova Fabrication Department factory overhead 5555,000 Assembly Department factory overhead 250.000 Total $814,000 Direct labor hours were estimated as follows: Fabrication Department 3.700 hour Assembly Department 3.700 Total 7.400 hours In addition, the director hours (ed to produce a unit of each product that were don Production Departments Gasoline Engine Diesel Engine Fabrication Department 2.70 1.30 Assembly Department 2.70 4.00 din 4.00 h Direct labor hours per unit a. Determine the per un actory overed to test hot and send the as the Check My Work SG ebook a. Determine the per unit factory overhead allocated to the gasoline and diesel engines under the single plantwide factory overhead rate method ingredor hun as the activity base. Gasoline engine 440 per unit Diesel engine 440 per unit b. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the multiple production department factory overhead rate method, wing direct labor hours as the activity base for each department Gasoline engine 1 x per unit Diesel engine 401x per unit factory Thuhe C. Recommend to management a product costing approach, based on your analyses in (a) and (b) Management should select the multiple department factory overhead rate method of allocating overed costs. The single plantwide overhead rate method indicates that both products have the same factory overhead per unit. Each productes the direct labore differently
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