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Question Completion Status: QUESTION 1 The management of Nova Industries, Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently the company uses a single plant-wide overhead rate for allocating overhead to the two products. However, management is considering using departmental overhead rates. The budgeted overhead for Nova is as follows: Fabrication Department Assembly Department Total $440,000 200,000 $640,000 Direct labor hours for the two departments are as follows: Fabrication Department Assembly Department Total 4,000 4,000 8,000 The following production volume data is available for the two products and two departments: Gasoline Engine Units Produced 400 Fabrication Department Direct Labor Hours Assembly Department Direct Labor Hours 2,400 1,600 Required: Diesel Engine 400 1,600 2,400 1. Calculate the predetermined overhead rate using a plant-wide rate based on direct labor hours and calculate the unit cost of overhead for each product. 2. Calculate the predetermined overhead rate using departmental rates based on direct labor hours and calculate the unit cost of overhead for each product. 3. Which method provides the more accurate cost for overhead? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers C