Reference no: EM132476066

1 Fabrication Department factory overhead = $614,800.00

2 Assembly Department factory overhead = 246,750.00

3 Total = $861,550.00

Direct labor hours were estimated as follows:

Fabrication Department = 5,300 hours

Assembly Department = 5,250 hours

Total = 10,550 hours

Production Departments                   Gasoline Engine                     Diesel Engine

Fabrication Department                       2.9 dlh                               1.8 dlh

Assembly Department                             1.82                                    .9

Direct labor hours per unit                      4.7 dlh                               4.7 dlh

Question a. 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.

Question 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 the activity base for each department.

Question c.(1) Recommend to management a product costing approach, based on your analyses in (a) and (b). (2) Give a reason for your answer.If required, round all per-unit answers to the nearest cent.