The Aleutian Company produces two products, Rings and Dings. They are manufactur

Question

The 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. Labor hours per un Machine hours Number of per unt 1,000 All of The machine hours take place in the Fabrication Department, which has an estimated overhead of $90,000 All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $105,000 ment uses machine hours for an allocation base, and the Assembly Department uses The Aleutian Company uses departmental overhead rates. The Fabrication Depart labor hours. What is the overhead cost per unit for Rings? Oa. $44.10 Ob. $23.25 C. $64.50 Od. $65.25

Explanation / Answer

the correct answer should be option (c) $ 64.5.

calculation of the same is as follows-

given information -

Please note all values are in $.

In case of further clarification required please comment.

Product No. of units Labor hours per unit machine hours per unit Rings 1000 4 6 Dings 2000 3 9

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