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, Assembly 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: hours as the allocation base. CommercialResidentialperunitperunit direct machine hours as the allocation base for each department. CommercialResidentialperunit$perunit c. Recommend to management a product costing approach, based on your analyses in (a) and (b). fact that commercial products use more costly overheads than residential products. overheads are applied evenly based on the direct labor hours. effect on the final costs