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 Units Direct Labor Hours per Unit Product Rings 1,090 7 Dings 2,440 10 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $82,300. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $67,600. 5 3 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. $5.31 per machine hour Ob. $2.50 per machine hour Oc. $2.57 per direct labor hour Od. $5.29 per direct labor hour

FINANCIAL ACCOUNTING
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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.
Number of
Units
Direct Labor Hours
per Unit
Product
Rings
1,090
Dings
2,440
All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $82,300. All of the labor hours take place in
the Assembly Department, which has estimated total factory overhead of $67,600.
5
3
Machine Hours
per Unit
The Assembly Department's factory overhead rate is
Oa. $5.31 per machine hour
Ob. $2.50 per machine hour
Oc. $2.57 per direct labor hour
Od. $5.29 per direct labor hour
7
10
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.
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 Units Direct Labor Hours per Unit Product Rings 1,090 Dings 2,440 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $82,300. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $67,600. 5 3 Machine Hours per Unit The Assembly Department's factory overhead rate is Oa. $5.31 per machine hour Ob. $2.50 per machine hour Oc. $2.57 per direct labor hour Od. $5.29 per direct labor hour 7 10 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.
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