cass: TEST 2 4,5,6 The Aleutian Company produces two products, Rings and Dings. They are manufactured in two Assembly. Data for the products and departments are listed below Fabrication and Labor hrsMachine hours 1,000 2,000 All of the machine hours take place in the Fabrication Department, which has an estimated overhcad of $90,000 All of the labor bours take place in the Assembly Department, which has an estimated total overhead of $105,000. uses departmental overhead rates. The Fabrication Department uses machine hours for The Aleutian Company an allocation base, and the Assenbly Department uses labor bours. 4. What is the Assembly Department overhead rate per labor bour? a. $19.50 b. $4.38 e. $10.50 d. $3.75 S. What is the Fabrication Department overhead rate per machine hour? a. $3.75 b. $8.12 c. $10.50 d. $9.00 6. Which of the following are the two most common allocation bases for factory overhead? a. Direct labor hours and factory expenses b. Direct labor hours and machine hours c. Machine hours and factory expenses d. Total overhead dollars and machine hours 7. Shubelik Company is changing to an activity-based costing method. They have determined that they will use hree cost pools: setups, inspections, and assembly. Which of the following would nos be used as the activity base for any of these three activities? a. number of direct labor hours b. tamber of units to be produced c. number of inspections d. amber of setups Page 2