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Need help with part B Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion overhead to the two products. However,
Need help with part B
Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: Fabrication Department factory overhead Assembly Department factory overhead Total Direct labor hours were estimated as follows: Fabrication Department Assembly Department Total $630,000294,000$924,000 4,200 hours 8,4004,200 hours In addition, the direct labor hours (dhh) used to produce a unit of each product in each department were determined from engineering records, as follows: a. Determine the per-unit 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 $440 per unit Diesel engine $440 per unit Gasoline engine $130 per unit Diesel engine $150 per unit c. Recommend to management a product costing approach, based on your analyses in (a) and (b). the multiple department rate method avoids the cost distortions by accounting for the overhead in each production department separately . Feedtask T Check My WorkStep by Step Solution
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