PART 1

Which of the following businesses would normally use job order costing systems and which would normally use process costing systems?

Please list each item and if it uses either (OPTION A - JOB ORDER) or (OPTION B - PROCESS)

Tax consultant
Paint manufacturer
Nail manufacturer
Videographer
Lotions and cosmetics manufacturer
Web design

PART 2

The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departmentsFabrication and assembly. Data for the products and departments are listed below.

Product	Number of Units	Labor Hours Per Unit	Machine Hours Per Unit
Rings	980	3	8
Dings	1,770	6	11

All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $81,500. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $71,800.

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?

a.$2.93

b.$6.19

c.$2.98

d.$5.29