Single Plantwide and Multiple Production Department Factory Overhead 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 production departments, Assemblr and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Eclipse: Direct machine hours were estimated as follows: In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering records, as follows: a. Determine the per-unit foctocy overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate mechod, using direct machine hours as the allocation base. a. Determine the per-unit factory overhead allocated to the cornmercial and residential motors under the single plantwide factory overhead rate method, using direct machine hours as the allocation base. Commercial \& Residential is unit per unit b. Determine the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory overhead rate method, using direct machine hours as the allocation base for each department. Commercial $ per unit Residential 1 per unit c. Recommend to management a product costing approach, based on your analyses in (a) and (b). 1. The management should consider multiple production department factory overhead rate methods, because this method calculates the cost more accurately and considers the fact that commercial products use more costly overheads than residential products. 2. The management should consider single plantwide factory ovechead rate methods, because this method calculates the cost more accurately and considers the fact that the overheds are applied eventy based on the direct labor hours. 3. The management could consider either muitiple production department factory overhead rate method or the single plantwide rate, as both ehese methods tuve the same effect on the final costs