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. All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $82,900. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $65,400. 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 Fabrication Department's factory overhead rate is a.$3.24 per direct labor hour b.$3.02 per machine hour c.$2.99 per direct labor hour d.$2.48 per machine hour Number of Direct Labor Hours Machine Hours Product Units per Unit per Unit Rings 1,020 4 5 Dings 2,790 8 8.

1. 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.
All of the machine hours take place in the Fabrication Department, which has estimated total
factory overhead of $82,900. All of the labor hours take place in the Assembly Department, which
has estimated total factory overhead of $65,400.
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 Fabrication Department's factory overhead rate is
a.$3.24 per direct labor hour
b.$3.02 per machine hour
c.$2.99 per direct labor hour
d.$2.48 per machine hour
Product
Number of
Units
Direct Labor Hours
per Unit
Machine Hours
per Unit
Rings 1,020 4 5
Dings 2,790 8 8