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 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 Rings is 3.

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 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 Rings is 3.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter18: Activity-based Costing

Section: Chapter Questions

Problem 2PA: The management of Gwinnett County Chrome Company, described in Problem 1A, now plans to use the...

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