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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 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.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1PA: Gwinnett County Chrome Company manufactures three chrome-plated productsautomobile bumpers, valve...
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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 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.

The Assembly 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 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
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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