All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $85,700. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $70,900. 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 Dings is

Question

Corbin Gillespie

Business

3 February, 06:18

All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $85,700. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $70,900. 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 Dings is

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Rene Edwards · Answer 1

total factory ovehead for a single unit of ding adding both, fabrication and asembly department:

$47.63

Missing information:

Product # DLH MH

Rings 1,080 7 7

Dings 2,280 7 8

Explanation:

fabrication applies overhead based on machine hours:

85,700 expected overhead

1,080 units if Rings x 7 MH +

2,280 units of Dings x MH = 25800

85,700 / 25,800 = 3,3217

Assembly applies overhead based on labor hours:

expected overhead 70,900

1,080 x 7 DLH +

2,280 x 7 DLH = 23,520

70,900 / 23,520 = 3,0144557

Overhead applied for a single unit of DING:

7 x 3.01 assembly overhead +

8 x 3.32 fabrication overhead

total for 47.63