Aleutian Company Produces Two Products: Rings and Dings

Multiple Choice

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 $90,000. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $105,000.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) $10.50 per direct labor hour
B) $9.00 per direct labor hour
C) $8.12 per machine hour
D) $3.75 per machine hour