Testing Department Assembly Department $280,000 800,000 $1,080,000 Total Direct machine hours were estimated as follows: Assembly Department Testing Department Total 4,000 hours 5,000 9,000 hours 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: Assembly Department Testing Department Total machine hours per unit Commercial 2.0 dmh Residential 3.0 dmh 6.0 1.5 8.0 dmh 4.5 dmh a. Determine the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method, using direct machine hours as the allocation base. Commercial $ Residential per 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 Residential per unit 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 overhead rate methods, because this method calculates the cost more accurately and considers the fact that the overheads are applied evenly based on the direct labor hours. 2. The management could consider either multiple production department factory overhead rate method or the single plantwide rate as both these methods have the came affect on the final costs