Single phantwde and muliele oroduction department factory eventiead rate methods and product cost distortion The manapement of Nova industries thei manufactures gasoine and fiesel engines through two broduction departmints, Fatrication and Assembly, Management needs accurate product cos infermation in order to quale groduct strategn. Dresectly, the company uses a single plantwide factory overtsad nate for allocating factory overtead to the two throfucts. However, maragement is considering the multiple broduktion decartment factory crethead rate method. The following foctory overtiedd was burdocted for Reva: Gidolineenginedbiestenginesberanitperunit activitu base for each degartment. Gatoline engine 1 per unit Diessel engine 3 per unst: c. lecommend to manajement a product costing approach, based on yoor analytes (ie (a) and (b). Managemeet should welect the toctory overtiad rate mithed of allociting overtiead contsi the Lactory overeid rale method indicates that beeh products have the same tactory overhead per unt. Each product vites the direct latat hours rate method wroldi the cost Gistortions bV actounting for the overtead