Sengle plantwide and multiple production department factory overhead rate methods and product cost distortion The management of Nova industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for aliocating factory 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: Direct labor hours were estimated as follows: In addition, the direct labor hours (dih) used to produce a unit of each product in each department were determined from engineering records, as follows: a. Determine the per-unit foctory overhesd allocated to the gasoline and diesel engines under the single plantwide factory overhead rate method, using direct tabor hours the activity base. Gasoline engine s per unit Diesel engines per unit b. Determine the per-unic factory overhead allocated to the gasoline and diesel engines under the multiple production department factocy overhead rate method, using dir labor hours as the activity base for each department. Gasoline engine 1 per unit Diesel engine 1 perunit