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I don't understand B In addition. the direct labor hours (dlh) used to produce a unit of each product in each department were determined from

I don't understand B

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In addition. the direct labor hours (dlh) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Department: Gasoline Engine Diesel Engine 3 Fabrication Department 1.30 dlh 2.70 dlh tusembly Department 2.70 1.3!} Direct labor hours per unit 4-00 dlh 4-00 dlh a. Determine the per-u nit factory overhead allocated to the gasoline and diesel engines under the single plantwide factory overhead rate. method, using direct labor hours as the activity base. ' Gasoline engine if per unit Diesel engine of 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; V ' ' Gasoline engine C: X Per unit Diesel engine G K per unit e. Recommend to management a product costing approach, based on your analyses in (a) and (b). Management should select the multiple department J factory overhead rate method of allocating overhead costs. The a _ 7 4 v ' rreenshot single plantvvide \\/ factory overhead ratemethod indicates that both producls have the same factory overhead per unit. Each product uses 704... 2.20 PM 2' a the direct labor hours differently V . Thus, the multiple department \\I rate method avoids the cost distortions by accounting for the .'__ * overhead in each production department separately ~/ . ' :J N\" , l 1 Screenshot ~05...B.07 PM 20 :1 creen Shot 5 -05...11.32 PM 201 All work saved

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