QUESTION 12 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 Direct Labor Number of Units Hours per Unit 4 3 1,000 2,000 Machine Hours per Unit 6 9 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $90,000. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $105,000. 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 (rounded to the nearest cent) is a. $8.12 per machine hour b. $9.00 per direct labor hour Oc. $10.50 per direct labor hour Od. $3.75 per machine hour 1 poi

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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QUESTION 12
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
1,000
2,000
Direct Labor
Hours
per Unit
4
3
Machine Hours
per Unit
6
9
All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $90,000. All of the
labor hours take place in the Assembly Department, which has estimated total factory overhead of $105,000.
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 (rounded to the nearest cent) is
a. $8.12 per machine hour
b. $9.00 per direct labor hour
c. $10.50 per direct labor hour
Od. $3.75 per machine hour
1 poi
Transcribed Image Text:QUESTION 12 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 1,000 2,000 Direct Labor Hours per Unit 4 3 Machine Hours per Unit 6 9 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $90,000. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $105,000. 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 (rounded to the nearest cent) is a. $8.12 per machine hour b. $9.00 per direct labor hour c. $10.50 per direct labor hour Od. $3.75 per machine hour 1 poi
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