The Aleutian Company Produces Two Products, Rings and Dings

question 42

Multiple Choice

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. 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.
The Aleutian Company uses a departmental overhead rates. The fabrication department uses machine hours for an allocation base, and the assembly department uses labor hours.
What is the overhead cost per unit for Rings?

• A) $65.25
• B) $23.25
• C) $44.10
• D) $64.50

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