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Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion was budgeted for Nova: In addition, the direct labor hours (dlh)

image text in transcribed Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion was budgeted for Nova: 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: a. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the single plantwide factory overhead rate method, using direct labor hours as the activity base. Gasoline engine $ per unit Diesel engine $ per unit Gasoline engine $ per unit Diesel engine q per unit c. Recommend to management a product costing approach, based on your analyses in (a) and (b). Management should select the product uses the direct labor hours factory overhead rate method of allocating overhead costs. The . Thus, the factory overhead rate method indicates that both products have the same factory overhead per unit. Each rate method avoids the cost distortions by accounting for the overhead Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion was budgeted for Nova: 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: a. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the single plantwide factory overhead rate method, using direct labor hours as the activity base. Gasoline engine $ per unit Diesel engine $ per unit Gasoline engine $ per unit Diesel engine q per unit c. Recommend to management a product costing approach, based on your analyses in (a) and (b). Management should select the product uses the direct labor hours factory overhead rate method of allocating overhead costs. The . Thus, the factory overhead rate method indicates that both products have the same factory overhead per unit. Each rate method avoids the cost distortions by accounting for the overhead

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