Answer:
The total factory overhead allocated per unit of Rings is $53.25 (non of the above suggestions)
Explanation:
First Determine the Overhead Rates for each department
<u>Assembly Department :</u>
Overhead Rates = Total Overhead Cost / Total Cost Driver (Allocation Base)
Note : Assembly Department uses direct labor hours as allocation base
= $105,000 / (1000×4+2000×3)
= $ 10.50 per direct labor hour
<u>Fabrication Department :</u>
Overhead Rates = Total Overhead Cost / Total Cost Driver (Allocation Base)
Note : Fabrication Department uses machine hours as an allocation base
= $90,000 / (1000×6+2000×9)
= $ 3.75 per machine hour
Then Allocate cost to Ring
Assembly Department = ($ 10.50 × 4) $42.00
Fabrication Department = ( $3.75 × 3) $11.25
The Total factory overhead per unit of Ring $53.25