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The activity-base usege quantikies and units produced for the two products follow; Required: 1. Determine a single piantwide factory overhead rate based upon cirect laber

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The activity-base usege quantikies and units produced for the two products follow; Required: 1. Determine a single piantwide factory overhead rate based upon cirect laber hours. Direct labor overhicad ratei per direct labor hour factory overhed is $435,000 and $735,000 for the Cutting and finishing departments, respectively. Round per unit amounts to the nearest whole cent. Cornment on the differences in the per-unit overhead allocated to each product using the single plantwide factory overhesd rate method, the muitiple production departmen factory verhead rate method; and activity-based costing. Aligcate overhead using a single plantwride rate, multiple department rates, and activity-based costing Downhill Sports tnc. manufactures two products: snowboards and skis. The factory overhead incurred is as follows: The activity bose associated with the two production deportments is direct labor hours. The indirect labor can be assignecd to two different activities as follaws! The sctivity-base usage quantities and units produced for the two products follow: 7. Comment on the differences in the per-unit overhead allocated to each product using the single plantwide factory overfiead rate method, the multele production dibartment factary oremead rate method, and activity-based costing. The plintwide overhesd method alocates 1 of overtiead to each product, whico the muetiple productien department method allocates 1 overtead to showbositi an to skis. Both the plantwide and multiple production department methods distort the allocation of owerhead because they account for how sach product consumes overhead. In contrast, activity-based costing allocates : of factory crerhead to snowbasits and accurately allocates factory overhead because it hetter accoiants for how each product consumes overhead. Snomboards censume

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