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.

• Question 1

  1 out of 1 points

  	Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.   Activity Cost Activity Base Procurement $  370,000  Number of purchase orders Scheduling   250,000 Number of production orders Materials handling   500,000 Number of moves Product development   730,000 Number of engineering changes Production 1,500,000 Machine hours     ​ Number of Purchase Orders  Number of Production Orders ​ Number of Moves ​ Number of Engineering Changes ​ Machine Hours ​ Number of Units Disk drives 4,000 300 1,400 10  2,000 2,000 Tape drives 4,000 150   800  10  8,000 4,000 Wire drives 12,000  800 4,000 25 10,000 2,500 ​ ​ Determine the activity rate per production order for scheduling.
  	Selected Answer: a.  $200.00 Answers: a.  $200.00 b.  $29.41 c.  $10.42 d.  $20.00 Response Feedback: Rationale: Activity Rate = Budgeted Activity Cost ÷ Total Activity-Base Usage​ Activity Budgeted Activity Cost ÷ Total Activity-Base Usage = Activity Rate Scheduling $250,000 ÷ 1,250* orders ​= $200 ​ Activity-Base Usage Products Number of Production Orders Disk drives 300 orders Tape drives                    150 Wire drives                    800 Total                 1,250*orders

• Question 2

  1 out of 1 points

  	Pinacle Corp. budgeted $700,000 of overhead cost for the current year. Actual overhead costs for the year were $650,000. Pinacle's plantwide allocation base, machine hours, was budgeted at 100,000 hours. Actual machine hours were 80,000. A total of 100,000 units was budgeted to be produced and 98,000 units were actually produced. Pinacle's plantwide factory overhead rate for the current year is:
  	Selected Answer: d.  $7.00 per machine hour Answers: a.  $8.13 per machine hour b.  $8.75 per machine hour c.  $6.50 per machine hour d.  $7.00 per machine hour Response Feedback: Rationale: Single Plantwide Factory Overhead Rate = Total Budgeted Factory Overhead ÷ Total Budgeted Plantwide Allocation Base Single Plantwide Factory Overhead Rate = $700,000 ÷ 100,000 machine hours = $7 per machine hour

• Question 3

  1 out of 1 points

  	The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information:   Setups Inspections Assembly (dlh) Hooks - 4,000 units 1 3 1 Nooks - 8,000 units 2 2 3         ​       Activity Pool Activity Base Budgeted Amount Setups 20,000 $  60,000 Inspections 24,000 120,000 Assembly (dlh) 28,000 420,000 ​ Calculate the total factory overhead to be charged to Nooks.
  	Selected Answer: b.  $488,000 Answers: a.  $400,000 b.  $488,000 c.  $600,000 d.  $300,000 Response Feedback: Rationale: The total factory overhead to be charged to Nooks = $61* × 8,000 units = $488,000 ​ Activity Budgeted Activity Cost ÷ Activity-Base Usage = Activity Rate × Activity Usage = Activity Cost Setups $60,000 ÷ 20,000 setups = $3 per setup × 2 setups = $ 6 Inspections $120,000 ÷ 24,000 inspections = $5 per inspection × 2 inspections =   10  Assembly (dlh) $420,000 ÷ 28,000 dlh = $15 per dlh × 3 dlh =    45  Total ​ ​ ​ ​ ​ ​ ​ ​   $61*​

• Question 4

  1 out of 1 points

  	The Botosan Factory has determined that its budgeted factory overhead budget for the year is $13,500,000 and budgeted direct labor hours are 10,000,000. If the actual direct labor hours for the period are 350,000, how much overhead would be allocated to the period?
  	Selected Answer: d.  $472,500 Answers: a.  $470,630 b.  $675,000 c.  $236,250 d.  $472,500 Response Feedback: Rationale: Single Plantwide Factory Overhead Rate = Total Budgeted Factory Overhead ÷ Total Budgeted Plantwide Allocation Base Single plantwide factory overhead rate = $13,500,000 ÷ 10,000,000 budgeted direct labor hours = $1.35 per direct labor hour Overhead allocated to the period = Single plantwide factory overhead rate × Actual direct labor hours for the period = $1.35 × 350,000 direct labor hours = $472,500 Overhead allocated to the period is $472,500.

• Question 5

  1 out of 1 points

  	Everest Co. uses a plantwide factory overhead rate based on direct labor hours. Overhead costs would be overcharged to which of the following departments?
  	Selected Answer: a.  A labor-intensive department Answers: a.  A labor-intensive department b.  A capital-intensive department c.  A materials-intensive department d.  All of the above

• Question 6

  1 out of 1 points

  	Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. ​   Overhead Total Direct Labor Hours DLH per Product  A   B  Painting Dept. $250,000 10,000 16  4 Finishing Dept.   75,000 12,000  4 16    Totals $325,000 22,000 20 20 ​ ​ Calculate the plantwide factory overhead rate for Adirondack Marketing Inc.
  	Selected Answer: c.  $14.77 per dlh Answers: a.  $0.07 per dlh b.  $25.00 per dlh c.  $14.77 per dlh d.  $ 6.25 per dlh Response Feedback: Rationale: Single Plantwide Factory Overhead Rate = Total Budgeted Factory Overhead ÷ Total Budgeted Plantwide Allocation Base Single Plantwide Factory Overhead Rate = $325,000 ÷ 22,000 direct labor hours = $14.77 per direct labor hour

• Question 7

  1 out of 1 points

  	The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information:   ​ Setups ​ Inspections ​ Assembly (dlh) Small Lamps - 3,000 units 8,000 9,000 16,000 Desk Lamps - 6,000 units 16,000 15,000 12,000         ​ Activity Pool Activity Base Budgeted Amount Setups 24,000 $60,000 Inspections 24,000 $120,000 Assembly (dlh) 28,000 $280,000 ​ ​ Calculate the overhead per unit to be charged to small lamps.
  	Selected Answer: a.  $75.00 Answers: a.  $75.00 b.  $39.17 c.  $17.50 d.  $38.33 Response Feedback: Rationale: ​The overhead per unit to be charged to the small lamps = $225,000* ÷ 3,000 small lamps = $75 per small lamp ​ Activity Budgeted Activity Cost ÷ Activity-Base Usage = Activity Rate × Activity Usage = Activity Cost Setups $60,000 ÷ 24,000 setups = $2.50 per setup × 8,000 setups = $  20,000 Inspections $120,000 ÷ 24,000 inspections = $5.00 per inspection × 9,000 inspections =     45,000 Assembly (dlh) $280,000 ÷ 28,000 dlh ​ = $10.00 per dlh × 16,000 dlh =   160,000 Total ​ ​ ​ ​ ​ ​ ​ ​  $225,000*

• Question 8

  1 out of 1 points

  	Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. ​   Overhead Direct Labor Hours (dlh) Product  A   B  Painting Dept. $248,000 10,000 dlh   16 dlh     4 dlh Finishing Dept.   72,000     10,000                 4            16         Totals $320,000 20,000 dlh   20 dlh    20 dlh ​ ​ Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses a multiple department rate system. ​
  	Selected Answer: a.  $425.60 per unit Answers: a.  $425.60 per unit b.  $214.40 per unit c.  $396.80 per unit d.  $320.00 per unit Response Feedback: Rationale: ​ ​ ​ ​ Allocation Base Usage per Unit ​ ​ × Production Department Factory Overhead Rate ​ ​ = ​ Allocated Factory Overhead per Unit of Product Product A ​ ​ ​ ​ ​ ​ Painting Department 16 direct labor hours ​ × ​ $24.80* per dlh ​ = ​ $396.80 ​ Finishing Department 4 direct labor hours ​ × ​ $ 7.20** per dlh ​ = ​     28.80 Total overhead cost per unit of Product A ​ ​ ​ ​ ​ $425.60 ​ Production Department Factory Overhead Rate = Budgeted Department Factory Overhead ÷ Budgeted Department Allocation Base Overhead rate per hour for the Painting Department = $248,000 ÷ 10,000 estimated direct labor hours = $24.80* Overhead rate per hour for the Finishing Department = $72,000 ÷ 10,000 estimated direct labor hours = $7.20**

• Question 9

  1 out of 1 points

  	Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.   Activity Cost Activity Base Procurement $  370,000  Number of purchase orders Scheduling   250,000 Number of production orders Materials handling   500,000 Number of moves Product development   730,000 Number of engineering changes Production 1,500,000 Machine hours     ​ Number of Purchase Orders  Number of Production Orders ​ Number of Moves ​ Number of Engineering Changes ​ Machine Hours ​ Number of Units Disk drives 4,000 300 1,400 10  2,000 2,000 Tape drives 4,000 150   800  10  8,000 4,000 Wire drives 12,000  800 4,000 25 10,000 2,500 ​ ​ Determine the activity-based cost for each disk drive unit.
  	Selected Answer: b.  $279.57 Answers: a.  $394.12 b.  $279.57 c.  $130.69 d.  $92.25 Response Feedback: Rationale: ​The activity-based cost for each disk drive = $559,132* ÷ 2,000 units = $279.57​ Activity Activity-Base Usage × Activity Rate = Activity Cost Procurement 4,000 orders × $18.50 per order = $  74,000   Scheduling 300 orders × $200 per order =   60,000 Materials handling 1,400 moves × $80.65 per move =  112,910 Product development 10 engineering changes ​ × ​ $16,222 per change ​ = ​  162,222 Production 2,000 machine hours × $75 per machine hour =  150,000 Total ​ ​ ​ ​   $559,132* ​

• Question 10

  1 out of 1 points

  	Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.   Activity Cost Activity Base Procurement $  370,000  Number of purchase orders Scheduling   250,000 Number of production orders Materials handling   500,000 Number of moves Product development   730,000 Number of engineering changes Production 1,500,000 Machine hours     ​ Number of Purchase Orders  Number of Production Orders ​ Number of Moves ​ Number of Engineering Changes ​ Machine Hours ​ Number of Units Disk drives 4,000 300 1,400 10  2,000 2,000 Tape drives 4,000 150   800  10  8,000 4,000 Wire drives 12,000  800 4,000 25 10,000 2,500 ​ ​ Determine the activity rate for product development per change.
  	Selected Answer: d.  $16,222 Answers: a.  $8,588 b.  $30,417 c.  $73,000 d.  $16,222 Response Feedback: Rationale: Activity Rate = Budgeted Activity Cost ÷ Total Activity-Base Usage​ Activity Budgeted Activity Cost ÷ Total Activity-Base Usage = Activity Rate Product development $730,000 ÷ 45* changes = $16,222 ​​ Activity-Base Usage Products Number of Engineering Changes Disk drives 10 changes Tape drives                     10 Wire drives                     25 Total  45* changes

• Question 11

  1 out of 1 points

  	Using multiple department factory overhead rates instead of a single plantwide factory overhead rate:
  	Selected Answer: d.  results in more accurate product costs Answers: a.  applies overhead costs to all departments equally b.  is simpler and less expensive to compute than a plantwide rate c.  results in distorted product costs d.  results in more accurate product costs

• Question 12

  1 out of 1 points

  	Common allocation bases are
  	Selected Answer: c.  direct labor dollars, direct labor hours, machine hours Answers: a.  machine dollars, direct labor dollars, direct labor hours b.  direct labor dollars, direct labor hours, direct material dollars c.  direct labor dollars, direct labor hours, machine hours d.  direct labor dollars, direct labor hours, machine dollars

• Question 13

  1 out of 1 points

  	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 hrs per unit Machine hours per unit Rings 1,000 4 6 Dings 2,000 3 9 All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $90,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $105,000. 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 Fabrication Department overhead rate per machine hour?
  	Selected Answer: c.  $3.75 Answers: a.  $10.50 b.  $9.00 c.  $3.75 d.  $8.12 Response Feedback: Rationale: Fabrication Department overhead rate per machine hour = $90,000 / 24,000 machine hours* = $3.75​ Product Number of Units × Machine Hours per Unit = Total Labor Hours Rings 1,000 units × 6 machine hours = 6,000 machine hours Dings 2,000 units × 9 machine hours = 18,000 machine hours Total ​ ​ ​ ​ 24,000 machine hours*

• Question 14

  1 out of 1 points

  	Blackwelder Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is $640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will require 275,000 direct labor hours and desk lamp production will need 125,000 direct labor hours. ​ Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to desk lamp production if actual direct hours for the period is 118,000?
  	Selected Answer: a.  $188,800 Answers: a.  $188,800 b.  $200,000 c.  $118,000 d.  $125,000 Response Feedback: Rationale: Single Plantwide Factory Overhead Rate = Total Budgeted Plant Overhead ÷ Total Budgeted Plantwide Allocation Base Single Plantwide Factory Overhead Rate= $640,000 ÷ 400,000 direct labor hours = $1.60 per direct labor hour Overhead allocated to the period = Single plantwide factory overhead rate × Actual direct labor hours for the period for desk lamp production = $1.60 × 118,000 direct labor hours = $188,800 The factory overhead allocated to desk lamp production is $188,800.​

• Question 15

  1 out of 1 points

  	Activity rates are determined by
  	Selected Answer: d.  dividing the cost budgeted for each activity pool by the estimated activity base for that pool. Answers: a.  dividing the actual cost for each activity pool by the actual activity base for that pool. b.  dividing the actual cost for each activity pool by the estimated activity base for that pool. c.  dividing the cost budgeted for each activity pool by the actual activity base in that pool. d.  dividing the cost budgeted for each activity pool by the estimated activity base for that pool.

• Question 16

  1 out of 1 points

  	Given the following information, determine the activity rate for setups. Activity Pool Activity Base Budgeted Amount Setups 10,000 $180,000 Inspections 24,000 $120,000 Assembly (DLH) 80,000 $400,000
  	Selected Answer: b.  $18.00 Answers: a.  $.75 b.  $18.00 c.  $5.09 d.  $58.00 Response Feedback: Rationale: Activity Rate = Budgeted Activity Cost ÷ Total Activity-Base Usage Activity rate for setups = $180,000 ÷ 10,000 setups = $18.00 per setup

• Question 17

  1 out of 1 points

  	The Beauty Beyond Words Salon uses an activity-based costing system in its beauty salon to determine the cost of services. The salon has determined the costs of services by activity as follows: Activity Activity Rate Hair washing $4.00 Conditioning $3.50 Chemical treatment $25.00 Styling $10.00 ​   Hair Washing Conditioning Chemical Treatment Styling Haircut 1 1 0 0 Complete style 1 1 0 1 Perm 2 3 1 1 Highlights 3 4 2 1 ​ ​ Calculate the cost of services for a haircut.
  	Selected Answer: b.  $7.50 Answers: a.  $4.00 b.  $7.50 c.  $11.50 d.  $3.50 Response Feedback: Rationale: The cost of services for a haircut = $7.50* ​ Activity Activity Rate × Activity Usage = Activity Cost Hair washing $4 per hair wash × 1 = $4.00  Conditioning $3.50 per conditioning × 1 =  3.50 Chemical treatment $25 per treatment × 0 =  0.00 Styling $10 per styling × 0 =  0.00 Total ​ ​ ​ ​  $7.50*

• Question 18

  1 out of 1 points

  	Using a plantwide factory overhead rate distorts product costs when:
  	Selected Answer: c.  both A and B are true Answers: a.  products require different ratios of allocation-base usage in each production department b.  significant differences exist in the factory overhead rates used across different production departments c.  both A and B are true d.  neither A nor B are true

• Question 19

  1 out of 1 points

  	Activity-based costing for selling and administrative expenses can also be beneficial in allocating expenses to various products. Which of the following is the best allocation base for help desk costs?
  	Selected Answer: d.  Number of calls Answers: a.  Square footage of the help desk office b.  Number of products sold c.  Number of sales employees d.  Number of calls

• Question 20

  1 out of 1 points

  	Which of the following are the two most common allocation bases for factory overhead?
  	Selected Answer: b.  Direct labor hours and machine hours Answers: 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

• Question 21

  0 out of 1 points

  	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 hrs per unit Machine hours per unit Rings 1,000 4 6 Dings 2,000 3 9 All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $90,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $105,000. 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?
  	Selected Answer: a.  $3.75 Answers: a.  $3.75 b.  $19.50 c.  $4.38 d.  $10.50 Response Feedback: Rationale: Assembly Department overhead rate per labor hour = $105,000 / 10,000 direct labor hours* = $10.50 Product Number of Units × Labor Hours per Unit = Total Labor Hours Rings 1,000 units × 4 direct labor hours = 4,000 direct labor hours Dings 2,000 units × 3 direct labor hours = 6,000 direct labor hours Total ​ ​ ​ ​ 10,000 direct labor hours*

• Question 22

  1 out of 1 points

  	The Kaumajet Factory produces two products - table lamps and desk lamps. It has two separate departments - Finishing and Production. The overhead budget for the Finishing Department is $550,000, using 500,000 direct labor hours. The overhead budget for the Production Department is $400,000 using 80,000 direct labor hours. ​ If the budget estimates that a desk lamp will require 1 hours of finishing and 2 hours of production, how much factory overhead will the Kaumajet Factory allocate to each unit of desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours?
  	Selected Answer: a.  $11.10 Answers: a.  $11.10 b.  $7.20 c.  $4.91 d.  $5.00 Response Feedback: Rationale: ​ ​ Allocation Base Usage per Unit × Production Department Factory Overhead Rate = Allocated Factory Overhead per Unit of Product Desk lamp ​ ​ ​ ​ ​ Finishing Department 1 direct labor hour × $1.10* per dlh = $ 1.10 Production Department 2 direct labor hours ×  $5.00** per dlh =   10.00 Total overhead cost per table lamp ​ ​ ​ ​ $11.10 ​​Production Department Factory Overhead Rate = Budgeted Department Factory Overhead ÷ Budgeted Department Allocation Base Overhead rate per hour for the Finishing Department = $550,000 ÷ 500,000 estimated direct labor hours = $1.10* per direct labor hour Overhead rate per hour for the Production Department = $400,000 ÷ 80,000 estimated direct labor hours = $5.00** per direct labor hour ​

• Question 23

  1 out of 1 points

  	The Kaumajet Factory produces two products - table lamps and desk lamps. It has two separate departments - Finishing and Production. The overhead budget for the Finishing Department is $550,000, using 500,000 direct labor hours. The overhead budget for the Production Department is $400,000 using 80,000 direct labor hours. ​ If the budget estimates that a desk lamp will require 1 hours of finishing and 2 hours of production, what is the total amount of factory overhead the Kaumajet Factory will allocate to desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours, if 26,000 units are produced?
  	Selected Answer: d.  $288,600 Answers: a.  $540,000 b.  $187,200 c.  $475,000 d.  $288,600 Response Feedback: Rationale: Factory overhead allocated to 26,000 desk lamps = $11.101 × 26,000 units = $288,600​ Production Department Factory Overhead Rate = Budgeted Department Factory Overhead ÷ Budgeted Department Allocation Base ​Overhead rate per hour for the Finishing Department = $550,000 ÷ 500,000 estimated direct labor hours = $1.10* per direct labor hour Overhead rate per hour for the Production Department = $400,000 ÷ 80,000 estimated direct labor hours = $5.00** per direct labor hour​ ​ Allocation Base Usage per Unit × Production Department Factory Overhead Rate = Allocated Factory Overhead per Unit of Product Desk lamp ​ ​ ​ ​ ​ Finishing Department 1 direct labor hour × $1.10* per dlh = $ 1.10  Production Department 2 direct labor hours ×  $5.00** per dlh = 10.00 Total overhead cost per table lamp ​ ​ ​ ​ $11.101

• Question 24

  1 out of 1 points

  	Blackwelder Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is $640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will require 275,000 direct labor hours and desk lamp production will need 125,000 direct labor hours. ​ Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to small lamp production if actual direct hours for the period is 285,000?
  	Selected Answer: d.  $456,000 Answers: a.  $275,000 b.  $440,000 c.  $285,000 d.  $456,000 Response Feedback: Rationale: Single Plantwide Factory Overhead Rate = Total Budgeted Plant Overhead ÷ Total Budgeted Plantwide Allocation Base Single Plantwide Factory Overhead Rate = $640,000 ÷ 400,000 direct labor hours = $1.60 per direct labor hour Overhead allocated to small lamp production = Single plantwide factory overhead rate × Actual direct labor hours for the period for small lamp production = $1.60 × 285,000 direct labor hours = $456,000 The factory overhead allocated to small lamp production is $456,000.

• Question 25

  1 out of 1 points

  	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 hrs per unit Machine hours per unit Rings 1,000 4 6 Dings 2,000 3 9 All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $90,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $105,000. 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 Dings?
  	Selected Answer: a.  $65.25 Answers: a.  $65.25 b.  $64.50 c.  $56.75 d.  $23.25 Response Feedback: Rationale: Overhead cost per unit for Dings = (Assembly Department overhead rate per labor hour × Labor hours per unit) + (Fabrication Department overhead rate per machine hour × Machine hours per unit) Overhead cost per unit for Dings = ($10.501 × 3 direct labor hours) + ($3.752 × 9 machine hours) = $31.50 + $33.75 = $65.25​ Assembly Department overhead rate per labor hour = $105,000 / 10,000 direct labor hours* = $10.501​​ Product Number of Units × Labor Hours per Unit = Total Labor Hours Rings 1,000 units × 4 direct labor hours = 4,000 direct labor hours Dings 2,000 units × 3 direct labor hours = 6,000 direct labor hours Total ​ ​ ​ ​ 10,000 direct labor hours* Fabrication Department overhead rate per machine hour = $90,000 / 24,000 machine hours** = $3.752 Product Number of Units × Machine Hours per Unit = Total Labor Hours Rings 1,000 units × 6 machine hours = 6,000 machine hours Dings 2,000 units × 9 machine hours = 18,000 machine hours Total ​ ​ ​ ​ 24,000 machine hours**