Multiple Department Rates Nerdzy would also like you to allocate the costs using the multiple departments method. You have been provided the additional information specific to each department. Allocation Base Machine Hours Est. MOH Internal Assembly 103,847 External Assembly 68,734 Labor Hours Testing Packaging 14,585 Labor Costs 88,077 Machine Hours 2.a Calculate the predetermined overhead allocation rate for each department. OH All Rate Internal Assembly per per of per External Assembly Testing Packaging Cost Driver Data per department & product Standard Premium Standard 2.b Allocate overhead costs to each product within each department. Premium Desktop Desktop Laptop Laptop Standard Desktop Premium Standard Premium Desktop Laptop Laptop Internal Assembly 9,046 2,155 19,248 15,433 Machine Hours Internal Assembly External Assembly 3,486 1,845 4,812 Testing $ 61 $ 87 $ 76 $ Packaging 1,867 912 3,580 2,111 79 3,115 Labor Hours External Assembly DL Costs per unit Machine Hours Testing Packaging # of Units Produced 4000 2100 6200 3548 2.c Calculate the manufacturing overhead cost per unit per department. Requirements 2.a Calculate the predetermined overhead allocation rate for each department. 2.b Allocate overhead costs to each product within each department. 2.c Calculate the manufacturing overhead cost per unit per department. 2.d Determine the total cost per unit per product. 2.e Compare the total estimated costs per unit under each calculation method and determine which method you would recommend to management and why. Standard Desktop Premium Standard Premium Desktop Laptop Laptop MOH Cost Per Unit 2.d Determine the total cost per unit per product. Standard Premium Standard Premium Desktop Desktop Laptop Laptop Total Cost Per Unit 2.e Compare the total estimated costs per unit under each calculation method and determine which method you would recommend to management and why. Premium Standard Premium Standard Desktop Desktop Laptop Laptop Single Rate Cost per unit 279.28 377.30 304.78 414.34 Multiple Rate Cost per unit Difference (279.28) (377.30) (304.78) (414.34) Method Recommended to Management: