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Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently,
Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Eclipse:
Single Perwirls and Mall Plution Department Facing vehel als Whed Product Cat Distortion Edipsc Mozer Company manufactures to tvo af socialt; dlectric motors, a commedal ictor and a codental mototrough the production departners, Serembly and Testing. Freservly, the comary cosa circle playwide facer o cresd rate for alcctio factory ovetead to the ta products. However. managements consccring using the multiple procuction department factory overricadrato mcthod. Thic following factory overnasc was budgeted for Eclipse: $200,000 Assembly Department Test Desert UCO,099 Teta Direct machine hours were stimated Follow 1,000 lissembly Department That Di 5.000 Trstel 4,000 In all, wc (c) puri ashpra il CHI Chirigir ing crush farms: Commercial Residential 2.0 cm Assembly Department Testi Dodatna 30 Th 1.5 4.5 mm Total macrour 8.0 cm a. Determine the per unit factory overhead alccated to the comme cal and residencial motors under the single planteide factory overhead rate method, using direct racire hours as the allocation base per unit Residential THI h. C-termine the unit factory ovatel word to the mil and intential intors and the rul ple provel.ct or department facintyreate meel, being direcchie trator befrir nach repartiment Cermals | per unit Rcaldendal per unitStep by Step Solution
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