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Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Rya

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Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Rya

Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Ryan's operations are divided into a metal casting department and a metal finishing department. The casting department uses a departmental overhead rate of $52 per machine hour, while the finishing department uses a departmental overhead rate of $28 per direct labor hour. Job A216 used the following direct labor hours and machine hours in the two departments:

Actual results   Casting Department   Finishing Department
Direct labor hours used   5   12
Machine hours used   4   3

The cost for direct labor is $32 per direct labor hour and the cost of the direct materials used by Job A216 is $1,800.

How much manufacturing overhead would be allocated to Job A216 using the departmental overhead rates?
A) $1,360
B) $454
C) $596
D) $544

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Managerial Accounting

Edition: 4^th

Author: Braun

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Brilliant ツ

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