enontocarro Chapter 18 - Homework Bock Painter Single Patwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion Edise Motor Company unutactures two types of specialty dectric motors, a commercial motor and a residential motor through the production departments, the company uses a single plantwide factory overhead rate for locating factory overhead to the two products. However, management is considering in the multiple action datent factory overhead rate method. The following factory overhead was buted for Edio Assembly Department Testing Department $280,000 500.000 Total $1,000,000 Direct machine hours were estimated as follows: Assembly Department Testing Department Total 4,000 hours 3,000 9.000 hon In addition the direct machine hours (h) sed to produce a unit of each product department were determining mo Commercial 20 am Assembly Department Testing Department Total machine hours per unit Residential 10 Th. 1.5 6.0 80 h CheckMy Work Pri tem 2.0 dmh 3.0 dhe Assembly Department Testing Department Total machine hours per unit 6.0 1.5 8.0 45 h a. Determine the per unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method using direct machines the action base Comercial per unit Redential per un Is. Determine the per un factory overhead allocated to the commercial and residential motore under the multiple repartiment factory overdra method wsing directions as the location base for each department Commercial Der unit Residential Derunt Recommend to management product costing coroach on your ways in an 1. The management should consider mudate production department factory over rate mattosbecane mis method cale trecut accurately and costs the core products use more costly overheids than redential product 2. menagement should consider single plantwide factory outwa u mothai Dramatid calculates the couture content content that the state wiany based on the direct labor hours 3. The management could consider either muito production department factory overtimehed or the indepartate in the fract Check