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Problem Set: Module 3 2. EX.O4.05.ALGO 3. EX.O4.06 4. EX.O4.03.ALGO eBook overhead to the two products. However, management is considering the multiple production department factory
Problem Set: Module 3 2. EX.O4.05.ALGO 3. EX.O4.06 4. EX.O4.03.ALGO eBook 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 $380,000 Assembly Department factory overhead 152,000 Total $532,000 Direct labor hours were estimated as follows: Fabrication Department 3,800 hours Assembly Department 3,800 Total 7,600 hours 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 Departments Gasoline Engine Diesel Engine Fabrication Department 1.20 dlh 2.80 dlh Assembly Department 2.80 1.20 Direct labor hours per unit 4-00 dlh 4-00 dlh 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 5 40 X per unit Diesel engine $ 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. Gasoline engine D per unit Diesel engine per unit
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