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 Assembly Department Testing Department $280,000 800,000 Total $1,000,000 Direct machine hours were estimated as follows: Assembly Department 4,000 hours Testing Department Total 5,000 9,000 hours In addition, the direct machine hours (em) used to produce a unit of each product in each department were determined from engineering records, as follows Assembly Department Testing Department Commercial 20 d Residential 6.0 Total machine hours per un 4.5.m Determine the perunt factory overhead allocated to the commercial and residential meters under the single plantwide factory overhead rate method, saing direct machine hours as the aften be Commercial Residential Determine the per factory overhead allocated to the commercial and residential mates under the multiple production department factory overhead temetted, using firect machine hours as the aff department Commercial Residential 1. The management should consider multe production department factory overhead rate methods, because his method calculates the more accurately and caneders the fact that commercial products use more y