Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion The management of Mova 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. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The followingfactory overhead was budgeted for Mova: Fabrication Department factory overhead $572,000Assembly Department factory cverhead 220,000Total $792,000 Direct labor hours were estimated as follows: Fabrication Department 4,400 hoursAssembly Department 4,400Total 8,800 hours In addition, the direct labor hours {dlh} 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 dih 2.80 dlhAssembly Department 2.80 1.20Direct laber hours per unit 4.00 dih 4.00 dih a. Determine the per-unit factory overhead allocated to the gascline and diesel engines under the single plantwide factory overhead rate method, using direct labor hours as the activity base. Gasoline engine $ X per unit Diesel engine X per unit b. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the multiple production department factory overhead rate method, using direct labor hours as the activity base for each department. Gasoline engine $ X per unit Digsel engine § X per unit