mySNHU D21 3-1 Problem Set: Module TI X CengageNOWv2 | Online te X New tab x |Q Course Hero - Search * *Search Results | Course Her X + X ca https://v2.cengagenow.com/ilmn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=assignment-take&inprogress=false A . .. HP Sign in | Chase.com Homepage | Virgini. WT Wells Fargo - Banki.. mySNHU Login Japanese, Korean, C.. @ ChineseFor.Us: The.. ( Apply for Financial. . Cengage: Digital Co.. M Gmail Other favorites Q Problem Set: Module 3 eBook Single plantwide and multiple production department factory overhead rate methods and product cost distortion ? 1. EX.04.03. The management of Nova Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product 2. EX.04.05.ALGO 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 Nova: 3. EX.04.07 .ALGO Fabrication Department factory overhead $748,000 308,000 4. TMM.04.06 Assembly Department factory overhead Total $1,056,000 5. EX.04.06 Direct labor hours were estimated as follows: Fabrication Department 4,400 hours Assembly Department 1,400 + Total 8,800 hours In addition, the direct labor hours (dlh) 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 1.20 dlh 2.80 dlh Assembly Department 2.80 1,20 Direct labor hours per unit 4.00 dlh 1.00 dlh 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. Gasoline engine $ X per unit Diesel engine $ X per unit Progress: 3/5 items Check My Work Previous Next Assignment Score: 51.11% All work saved. Email Instructor Save and Exit Submit Assignment for Grading 81 F Mostly clear Q Search ^ O ENG () D 5:54 AM 7/17/2024mySNHU D21 3-1 Problem Set: Module TI X CengageNOWv2 | Online te x New tab x |Q Course Hero - Search * *Search Results | Course Her X + X ca https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=assignment-take&inprogress=false A . .. HP Sign in | Chase.com Homepage | Virgini.. WE Wells Fargo - Banki. mySNHU Login Japanese, Korean, C... ChineseFor.Us: The. ( Apply for Financial.. Cengage: Digital Co.. M Gmail Other favorites Q Problem Set: Module 3 eBook Direct labor hours per unit 4.00 dih 4.00 dih ? 1. EX.04.03. 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. 2. EX.04.05.ALGO Gasoline engine $ X per unit 3. EX.04.07 .ALGO Diesel engine $ X per unit 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 4. TMM.04.06 hours as the activity base for each department. 5. EX.04.06 Gasoline engine $ X per unit o Diesel engine $ X per unit c. Recommend to management a product costing approach, based on your analyses in (a) and (b). Management should select the multiple department V factory overhead rate method of allocating overhead costs. The single plantwide V factory overhead rate method indicates that both products have the same factory overhead per unit. Each product uses the direct labor hours differently _ v . Thus, the multiple department + rate method avoids the cost distortions by accounting for the overhead in each production department separately _V. Feedback Check My Work a. Total budgeted overhead + Total labor hours = Department Factory Overhead Rate Product costs = Department Factory Overhead Rate x Labor hours for each product b. Department rate = Department Overhead + Labor hours Product allocation = Labor hours per product x Department rate; Add both department allocations together to obtain a total per product. c. Consider whether factory overhead determined under a single plantwide factory overhead rate or under multiple production department factory overhead rates is more accurate in calculating the true cost of the products. Progress: 3/5 items Check My Work Previous Next Assignment Score: 51.11% All work saved. Email Instructor Save and Exit Submit Assignment for Grading 81 F Mostly clear Q Search ^ O ENG () 0 5:54 AM 7/17/2024