The management of Firekolt Industries Inc. manufactures gasoline and diesel engines through twoThe management of Firekolt Industries Inc. manufactures gasoline and diesel engines through twoa. 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.

production departments, Fabrication and Assembly. Management needs accurate product cost

information in order to guide product strategy. Presently, the company uses a single plantwide factory

overhead rate for allocating factory overhead to the two products. However, management is considering

the multiple production department factory overhead rate method. The following factory overhead was

budgeted for Firekolt:

production departments, Fabrication and Assembly. Management needs accurate product cost

information in order to guide product strategy. Presently, the company uses a single plantwide factory

overhead rate for allocathing factory overhead to the two products. However, management is considering

the multiple production department factory overhead rate method. The following factory overhead was

budgeted for Firekolt: