The management of firebolt industries and corporation manufactures gasoline and diesel engines through to production department, fabrication and assembly. Management needs accurate products at cost information in order to guide product strategy. Presently, the company uses a single plant wide factory overhead rate for the allocating factory overhead to the two products. However, management is considered the multiple production department factory overhead right method. The following factory overhead was budgeted for firebolt:

A)

determine the per-unit factory overhead allocated to the gasoline diesel engines under the single play my factory overhead rate method, using direct labor hours as the activity base. If required round all per direct labor hours and per unit answers to the nearest cent.

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 an activity base for each department. If required Randolph Union answers to the nearest cent.

$455,000,00 1 Fabrication Department factory overhead 2 Assembly Department factory overhead 286.200.00 1 Total $741.200.00 Direct labor hours were estimated as follows: Fabrication Department 4,550 hours Assembly Department 5,400 Total 9,950 hours In addition, the direct labor hours (dih) 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 2.9 din 22 dih Assembly Department 2.2 2.9 Direct labor hours per unit 5.1 dih 5.1 din Gasoline engine $ per unit Diesel engine $ per unit Gasoline engine $ per unit Diesel engine GA per unit