Question

Q1:

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.

Product	Number of Units	Labor Hours Per Unit	Machine Hours Per Unit
Rings	1,080	7	7
Dings	2,280	7	8

All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $80,300. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $74,300.

The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours.

What is the Assembly Department overhead rate per labor hour?

$3.07

$3.11

$3.29

$3.16

Q2:

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.

Product	Number of Units	Labor Hours Per Unit	Machine Hours Per Unit
Rings	1,040	5	4
Dings	2,020	7	9

All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $85,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $71,100.

The Aleutian Company uses 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?

$33.60

$51.01

$59.96

$4.25

Q3:

The total factory overhead for Big Light Company is budgeted for the year at $948,660. Big Light manufactures two different products - night lights and desk lamps. Night lights is budgeted for 8,500 units. Each night light requires three hour of direct labor. Desk lamps is budgeted for 11,700 units. Each desk lamp requires two hours of direct labor.

a Determine the total number of budgeted direct labor hours for year.

b Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places, if necessary.
$

c Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate calculated in (b). Round your answers to two decimal places, if necessary.

Night Lights =	$
Desk Lamps =	$

Answer 1

1)Totalnumber of direct labor hours : [1080*7]+[2280*7] = 23520

Assembly Department overhead rate per labor hour =Total overhead for assembly department / total number of DLH

     = 74300/23520

     = $ 3.16 per DLH

Correct option is " D"

2)Total DLH = [5*1040]+[2020*7]=19340

Total machine hours = [1040*4]+[2020*9]= 22340

overhead rate for fabrication department =85000/22340=$ 3.81 per MH

Overhead rate for assembly department = 71100/19340 = $ 3.68 per DLH

overhead cost per unit for Rings = [5*3.68]+[4*3.81]

            = 18.4+ 15.24

          = 33.64

Correct option is "A"    approx to 33.60

3)a) otal number of budgeted direct labor hours for year = [8500*3]+[11700*2]

              = 25500+23400

              = 48900 DLH

B)OVerhead rate = Estimated overhead /estimated DLH

   = 948660 / 48900

= $ 19.4 Per DLH

C)

	overhead per unit
Night ights	19.4*3 = 58.2
Desk lamps	19.4*2=38.8