Answer:- b. $4.15
Total Machine Hours = (960*8) + (1,820*7) = 20420 Machine Hours
Fabrication Department Overhead rate per machine hour
= Total Overhead / Total Machine Hours
= 84,800 / 20420
= $4.15
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The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departments --...
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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 1,060 5 7 Dings 2,700 9 7 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $84,600. All of the labor hours take place in the Assembly Department, which has estimated...
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