Pineapple Motor Company manufactures two types of specialtyelectric motors, a commercial motor and a residential motor,through two production departments, Assembly and Testing.Presently, the company uses a single plantwide factory overheadrate for allocating factory overhead to the two products. However,management is considering using the multiple production departmentfactory overhead rate method. The following factory overhead wasbudgeted for Pineapple:

1	Assembly Department	$240,000.00
2	Testing Department	750,000.00
3	Total	$990,000.00

Direct machine hours were estimated as follows:

Assembly Department	3,000	hours
Testing Department	6,000
Total	9,000	hours

In addition, the direct machine hours (dmh) used to produce aunit of each product in each department were determined fromengineering records, as follows:

	Commercial	Residential
Assembly Department	1.5 dmh	1.0 dmh
Testing Department	3.0	2.0
Total machine hours per unit	4.5 dmh	3.0 dmh

	Required:
a.	Determine the per-unit factory overhead allocated to thecommercial and residential motors under the single plantwidefactory overhead rate method, using direct machine hours as theallocation base.
b.	Determine the per-unit factory overhead allocated to thecommercial and residential motors under the multiple productiondepartment factory overhead rate method, using direct machine hoursas the allocation base for each department.
c.	(1) Recommend to management a product costing approach, basedon your analyses in (a) and (b). (2) Give a reason for youranswer.