Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Rings 1,080 6 5 Dings 1,740 5 10 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $83,500. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $68,000. Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The Fabrication Department's factory overhead rate is
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Rings 1,080 6 5 Dings 1,740 5 10 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $83,500. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $68,000. Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The Fabrication Department's factory overhead rate is
Chapter1: Financial Statements And Business Decisions
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Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below.
Product |
Number of Units |
Direct Labor Hours Per Unit |
Machine Hours Per Unit |
| Rings | 1,080 | 6 | 5 |
| Dings | 1,740 | 5 | 10 |
All of the machine hours take place in the Fabrication Department, which has estimated total factory
Aleutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours.
The Fabrication Department's factory overhead rate is
a.$3.58 per direct labor hour
b.$4.48 per machine hour
c.$4.88 per direct labor hour
d.$3.66 per machine hour
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