how to increase How to Make OLX agenow.com/ilm/take Assignment/take AssignmentMain.do?invoker=&takeAssignmentSessionLocators... To @ Si eBook Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion 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: $280,000 Assembly Department Testing Department 800,000 Total $1,080,000 Direct machine hours were estimated as follows: Assembly Department 4,000 hours 5,000 Testing Department Total 9,000 hours In addition, the direct mathine hours (dm) used to produce a unit of each product inach department were determined from cogineering records, as follows: Residential Commercial 2,0 dm 3.0 dni Assembly Department Testing Department Cho My Work EP 2.0 dmh 3.0 dmh Assembly Department Testing Department Total machine hours per unit 6.0 1.5 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. Commercials 960 per unit Residentials 540 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 Commercial 5 per unit per unit Residential 5 per unit C. Recommend to management a product costing approach based on your analyses in (a) and (b) 1. The management should consider multiple production department factory overhead rate methods, because this method calculates the cost more accurately and considers the fact that commercial products use more costly overheads than residential products, 2. The management should consider single planteide factory overhead rate methods, because this method calculates the cost more accurately and considers the fact that the overheads are applied evenly based on the direct labor hours: 2. The management could consider the multiple production department factory overhead rate method of the single plantwiderate de both these methods have the same effect on the final costs Check by Wodk