Answer Happy

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 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:
Direct labor hours were estimated as follows:
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:
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.
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.
.