The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours.

Aleutian Company uses the multiple production department factory overhead rate method. All of the labor hours take place in the Assembly Department, which has estimated total factory overhead of $65,400. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Rings 1,000 5 6 Dings 2,040 5 11 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $85,200. Data for the products and departments are listed below. They are manufactured in two departments: Fabrication and Assembly.

Aleutian Company produces two products: Rings and Dings.