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 Rings Dings Number of Units 1,080 2,050 Direct Labor Hours per Unit 7 5 Machine Hours per Unit 7 The Assembly Department's factory overhead rate is Oa. $4.19 per machine hour Ob. $3.26 per direct labor hour Oc. $3.14 per machine hour Od. $4.08 per direct labor hour 9 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $84,700. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $72,600. 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.
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 Rings Dings Number of Units 1,080 2,050 Direct Labor Hours per Unit 7 5 Machine Hours per Unit 7 The Assembly Department's factory overhead rate is Oa. $4.19 per machine hour Ob. $3.26 per direct labor hour Oc. $3.14 per machine hour Od. $4.08 per direct labor hour 9 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $84,700. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $72,600. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 | 7 | 7 |
| Dings | 2,050 | 5 | 9 |
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 Assembly Department's factory overhead rate is
Transcribed Image Text: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
Rings
Dings
Number of
Units
Direct Labor Hours
per Unit
1,080
2,050
7
9
All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $84,700. All of the labor hours take place in the Assembly
Department, which has estimated total factory overhead of $72,600.
7
5
Machine Hours
per Unit
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 Assembly Department's factory overhead rate is
Oa. $4.19 per machine hour
Ob. $3.26 per direct labor hour
Oc. $3.14 per machine hour
Od. $4.08 per direct labor hour
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