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. Number of Direct Labor Hours Machine Hours Product Units Per Unit Per Unit Rings 1,000 4 Dings 2,000 3 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 total factory overhead allocated per unit of Dings is Oa. s56.75 Ob. $64.50 Oc. $65.25 Od. s23.25

Cornerstones of Cost Management (Cornerstones Series)
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Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 31E: Chester Company provided information on overhead for its three producing departments as follows:...
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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.
Number of
Direct Labor Hours
Machine Hours
Product
Units
Per Unit
Per Unit
Rings
1,000
4
6
Dings
2,000
3
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 total factory overhead allocated per unit of Dings is
Oa. $56.75
Ob. $64.50
Oc. $65.25
Od. $23.25
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. Number of Direct Labor Hours Machine Hours Product Units Per Unit Per Unit Rings 1,000 4 6 Dings 2,000 3 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 total factory overhead allocated per unit of Dings is Oa. $56.75 Ob. $64.50 Oc. $65.25 Od. $23.25
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