The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departmens, Fabrication and Assembly. Management needs accurate product cost information n order to guide product strategy. Presentiy the company uses sngle plantide factory overhead rate lor allocating tactory overhead to the two products. However, management is considering the multiple production department 1actory overhead rate method The tolloving factory overhead was budgeted tor Firebot: Fabrication Department factory overhead 2Assembly Department lactory aveshead 3 Total $571,200.00 824,200.00 Direct labor hours were estimated as tollows: Fabrication Department 5,100 hours Assembly Department 4,600 Total 9,700 hours In additicn, the direct labor hours (dih) used to praduce a unit of each product in each department were delermined from engineering records, as folloNS Production Departments Gasoline Engine Diesel Engine Fabrication Department 28 dih Assembly Deparlmen 22 Direct labor hours per unit 5.0 dlh 22 dh 2 8 5.0 dh Required: a. Determine the per-urt factory overhead alocated to the gasoline and dies enines undsr the singis pantwe factovy ovsrhead rate method, using direct labo hours as the acivity basE b. Detemwne the per-ut factory overhead alocated to the gasone and dieserengines under the mutole productiom department facton ovsrhead rate method, using direct labor hoors as the activity base for each dapardment. c. (1) Recommend to management e product costing approach, based on your analyses in (a) and (b). (2) Gwe a reason for your enswer ir required, round al per-unnt answers to the nearest cent. a eterming the per unit factory ove sad all cated to the gas e and dasel engines unde te sm 6 plant de factory overhead ats method using d ect labor nou as he a wiv se ured round a x per-direct labor hows and per-urit answers to the nearest cent Gasoline engine S Diesel engine S D. Deremine the per-unt fectoy overheed aocsted to the gsaoWne and diesel engines under the muiple productian department factory overheed rste method, using direct isbor hours ss the scvty bese for each depetment. requtred, round aw per-unt answers to the nearest cent Gasoline engine 5 Diesel engine S C. (1) Recommend to management a product costing approach, based on your anaiyses in (a) and (o). (2) Grve a reason for your answer per unit per unit per unit per unt Management should change to the multiple production department factary overhead rate methad Management should continue to use the single plantwide overhead rate method. O Management is indifterent since elther method yields the same result O In this case, the single plantwide method causes cost distortion, so the multiple production department method should be used O In this case, the factory overhead rates tor each product are the same under elther method, theretore, the company should choose single plantwide method since its easier to implement O In this case, the multiple producton department method causes cost distorton, so the single plant nde method should be used