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Single Piantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion Pineapple Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Pineapple: Direct machine hours were estimated as follows: In addition, the direct machine hours (dmh) 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 Commercial and Residential motors under the single plantwide factory overhead rate method, using direct machine hours as the allocation base. Commercial Motor 1 per unit a. Determine the perinit factory overhead allocated to the Commercial and Residential motors under the single plantwide factory overhead nate method, using direct machine hours as the allocation base. b. Determine the per-unit factory overhead aliocated to the Commerciat and Residential motors under the multiple production department factory overhead rate methed, using drect machine hours as the allocation base for each department. Commercial Motor per unit Residential Motor per unit

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