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Single Plantwide and Multiple Production Department Factory Overhead Rabe Methods and Product Cost Distation The management of Novo Industries Inc, manufactures gasoline and diesel engines

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Single Plantwide and Multiple Production Department Factory Overhead Rabe Methods and Product Cost Distation The management of Novo 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. Pretently, the company uses a single plantwide factory overhead rate for nilocating 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: Pobelication Department factory overload $765,000 Assembly Department factory overhead 315,000 Total $1,050,000 Direct Sabar hours were estimated as follows: Fabrication Department 4,500 hours Assembly Department 4,500 Total 9,000 hours In addition, the direct labor hours (h) 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 cm 2.80 dth Assembly Department 2.80 1.20 Direct labor hours per unit .. Determine the per un factory overhead allocated to the line and engines under the single plantwide factory overhead rate method, using direct labor hours as the divity 4.00 h 4.00 per unit Gasoline engine Die engine b. Determine the per un total overhead allocated to the standige under the multiple production decertant factory overhead rate method, using direct laber be the city base for each pertinent per un Gawengine pe One perut

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