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products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: In addition, the direct

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products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: 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: Dasoline engine J per unit Gasoline engine per unit C. Recommend to management a nmdurt rnatinn anproach, based on your analyses in (a) and (b). Management should select the : factory overhead rate method of allocating overhead costs. The factory overhead rate method indicates that both products have the same factory overhead per unit. Each product uses the direct labor hours avoids the cost distortions by accounting for the overhead

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