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Home - > Students X Mail - Hoffmann, Brittany - Out X @ Module Three - ACC-202-R4582 X @ Module Three - ACC-202-R4582 X CengageNOWv2 | Online teach X X 2 https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker= &takeAssignmentSessionLocator=&inprogress =false . . . V X E Problem Set: Module 3 eBook 1. EX.04.03.ALGO 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 2. EX.04.05.ALGO 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: 3. EX.04.07.ALGO Assembly Department $280,000 4. TMM.04.06 Testing Department 800,000 5. EX.04.06 Total $1,080,000 Direct machine hours were estimated as follows: Assembly Department 4,000 hours Testing Department 5,000 Total 9,000 hours 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. Commercial $ X per unit Residential $ per unit 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 $ per unit Residential 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 Progress: 5/5 items Check My Work Previous Assignment Score: 65.33% All work saved. Email Instructor Save and Exit Submit Assignment for Grading