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bernie2981 bernie2981
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8 years ago
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.

What was the total cost of Job A216 if Ryan Fabrication used the departmental overhead rates to allocate manufacturing overhead?
A) $2,888
B) $2,344
C) $2,940
D) $2,434
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Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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8 years ago
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bernie2981 Author
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#2
8 years ago
You're such a dedicated member, I very much appreciate the help.

Marking this solved ✓
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#3
6 years ago
Thank you
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