Question: Juur analyses in (A) and (B). Support your recommendation Obi, 2.3 EX 18-7 Single plantwide and multiple production department factory overhead rate methods and product

 Juur analyses in (A) and (B). Support your recommendation Obi, 2.3
EX 18-7 Single plantwide and multiple production department factory overhead rate methods

Juur analyses in (A) and (B). Support your recommendation Obi, 2.3 EX 18-7 Single plantwide and multiple production department factory overhead rate methods and product cost distortion B. Diesel engine, The management of Firebolt Industries Inc. manufactures gasoline and diesel $370 per unit two production departments, Fabrication and Assembly. Management needs cost information in order to guide product strategy. Presently, the com plantwide factory overhead rate for allocating factory overhead to the two management is considering the multiple production department factory overhe The following factory overhead was budgeted for Firebolt: diesel engines through veeds accurate product be company uses a single o products. However, overhead rate method Fabrication Department factory overhead Assembly Department factory overhead Total $550,000 250,000 $800,000 Direct labor hours were estimated as follows: Fabrication Department 5,000 hours Assembly Department 5,000 Total 10,000 hours In addition, the direct labor hours (dih) used to produce a unit of each product in department were determined from engineering records, as follows: Product in each 921 Chapter 18 Activity-Based Costing Production Departments Fabrication Department Assembly Department Direct labor hours per unit Determine the per-unit factory overhead allocat single plantwide factory overhead rate method, usi Determine the per-unit factory overhead allocated the multiple production department factory overhead rate method, using direct labe as the activity base for each department. Recommend to management a produc in (A) and (B). Support your recommendation. Gasoline Engine Diesel Engine 3.0 dlh 2.0 dlh 2.0 3.0 5.0 din 5.0 dih nit factory overhead allocated to the gasoline and diesel engines under the A. B. ne per-unit factory overhead allocated to the gasoline and diesel engines under end to management a product costing approach, based on your analyses

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