EDUOK Calculator Nova: Fabrication Department factory overhead Assembly Department factory overhead $731,000 Total 301,000 $1,032,000 Direct labor hours were estimated as follows: Fabrication Department Assembly Department 4,300 hours 4,300 Total 8,600 hours In addition, the direct labor hours (dih) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Departments Gasoline Engine Diesel Engine Fabrication Department 1.20 dlh 2.80 dlh Assembly Department 2.80 1.20 Direct labor hours per unit 4.00 dih 4.00 dih a. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the single plantwide factory rate method, using direct labor hours as the activity base. Gasoline engine per unit Diesel engine per unit Juum rate method, using direct labor hours as the activity base. in viesti engines under the single plantwide factory overhead Gasoline engine $ per unit Diesel engine $ 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, using direct labor hours as the activity base for each department. Gasoline engine s x per unit Diesel engine s x per unit 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 overhead costs. The single plantwide factory overhead rate method indicates that both products have the same factory overhead per unit. Each product uses the direct labor hours differently . Thus, the multiple department rate method avoids the cost distortions by accounting for the overhead in each production department separately