4)

1. 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	5
   Dings	1,920	4	11

   All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $85,300. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $66,400.

   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 Assembly Department's factory overhead rate is

   a.$5.12 per direct labor hour

   b.$5.66 per machine hour

   c.$3.23 per direct labor hour

   d.$3.18 per machine hour

3)

Pinnacle Corp. budgeted $224,140 of overhead cost for the current year. Actual overhead costs for the year were $216,630. Pinnacle's plantwide allocation base, machine hours, was budgeted at 49,260 hours. Actual machine hours were 56,240. A total of 99,670 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is:

a.$2.25 per machine hour

b.$4.55 per machine hour

c.$2.17 per machine hour

d.$4.40 per machine hour