Instructions The management of rebolt Industries ng marutactures gasoline ander engines through two produto derments, Fanation and Assembly Management de cele proud cost information in order to guide product strategy Presently, the companyes a single plantwide factory overtad rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was bodgeted for Frebolt Fakation Department factory overal Assembly Department factory overhead 5571,200.00 25300000 $12420000 Direct tabor hours were estimated as follows: Fabrication Department 5.000 hours Assembly Department 4.800 Total 0,700 hours 3.000 In addition, the direct labor hours (dih) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Departments Gasoline Engine Diesel Engine Fabrication Department 28 din 22 dih Assembly Department 2.2 28 Direct labor hours per unit 5.0 dh 50 dih Required: a. Determine the per unit factory overhead allocated to the gasoline and diesel engines under the single plantende factory overhead rate method using direct labor hours as the activity base 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 c. (1) Recommend to management a product costing approach, based on your analyses in (a) and (b) (2) Give a reason for your answer "If required, round all per-unit answers to the nearest cent WIGO Mothog Determine the per unit factory overhead allocated to the gasoline and desel engines under the single plantwide factory overhead radu moethod, using direct faber hown as the activity base required, round a perdirect labor hours and per-unit anwers to the nearest cent Gasoline engines Diesel engines per unit per unit OrdeMed b Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the multiple production department factory overhead role method using direct fabor hours as the activity base for each department. If required round all per-unit answers to the nearest cent Gasoline engines Diesel engine $ por unit por un Instructions Single Plantwide Method Multiple Production Department Method Final Questions Multiple Production Department Method Final Questions c. (1) Recommend to management a product costing approach, based on your analyses in (a) and (b)(2) Give a reason for your answer (1) Management should change to the multiple production department factory overhead rahe method. Management is indifferent since the method yields the same result Management should continue to use the single plantwide overhead tate method. (2) In this case, the single plantwide method chunes cost distortion to the multiple production department method should be used In this case, the factory overhead rates for each product ure the same under other method; therefore, the company should choose single plantvide method since it's easier to implement In this case, the multiple production department method causes cost distortion, so the single plantwide method should be used eck My Work
