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Rate Methods and Product Cost Distortion Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through
Rate Methods and Product Cost Distortion Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two produc overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production depart Assembly Department Testing Department Total $280,000 800,000 $1,080,000 Direct machine hours were estimated as follows: Assembly Department < Testing Department Total 4,000 hours 5,000 9,000 hours In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering recor Assembly Department Testing Department Total machine hours per unit Commercial Residential 2.0 dmh 3.0 dmh 6.0 1.5 8.0 dmh 4.5 dmh a. Determine the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate r Commercial $ Residential 960 per unit 540 per unit b. Determine the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory Commercial $ Residential $ 540 X per unit per unit Dacommand to management product coction approach haced on your analyses in (a) and (hl Check My Work All work saved.
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