HOME X B 4-2M X @ Ceng: X @ Login X My H( X Ceng: X Ceng: X Ceng: X ACC 2 X ACC Z X + X -> C v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Problem Set: Module 4 eBook Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, ? 1. BE.06.02.ALGO 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: 2. BE.06.03.ALGO Assembly Department $280,000 3. EX.06.01 Testing Department 800,000 4. EX.04.06 Total $1,080,000 5. PR.06.02A.ALGO Direct machine hours were estimated as follows: 6. TMM.04.06 Assembly Department 4,000 hours Testing Department 5,000 Total 9,000 hours hulu In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering records, as follows: Commercial Residential Assembly Department 2.0 dmh 3.0 dmh Testing Department 6.0 1.5 Total machine hours per unit 8.0 dmh 4.5 dmh a. Determine the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method, using direct machine hours as the allocation base. 2 Commercial $ per unit Check My Work Progress: 4/6 items Previous Next > 2 33 Assignment Score: 83.64% All work saved. Email Instructor Save and Exit Submit Assignment for GradingHOME X B 4-2M X @ Ceng: X @ Login X My H( X Ceng: X Ceng: X Ceng: X ACC Z X ACC Z X + X -> C v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Q Problem Set: Module 4 7 eBook (? 1. BE.06.02.ALGO a. Determine the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method, using direct machine hours as the allocation base. 2. BE.06.03.ALGO Commercial per unit 3. EX.06.01 Residential per unit 4. EX.04.06 b. Determine the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory overhead rate method, using direct machine hours as the allocation base for each department. 5. PR.06.02A.ALGO Commercial per unit 6. TMM.04.06 Residential per unit c. Recommend to management a product costing approach, based on your analyses in (a) and (b). it should consider multiple production department factory overhead rate methods, because this method calculates the cost more accurately and Screenshot . now hat commercial products use more costly overheads than residential products. Screenshot taken hulu t should consider single plantwide factory overhead rate methods, because this method calculates the cost more accurately and considers the fact Show in folder are applied evenly based on the direct labor hours. t could consider either multiple production department factory overhead rate method or the single plantwide rate, as both these methods have the final costs. M 3 y Overhead + Total Direct Machine Hours = Overhead Rate = Rate x Machine Hours for each Product E . 10 Previous Next > 2 33 COPY TO CLIPBOARD All work saved. Email Instructor Save and Exit Submit Assignment for Grading
