Use the information below to answer the following question(s) :
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 labour hour. Job A216 used the following direct labour hours and machine hours in the two departments:
The cost for direct labour is $32 per direct labour 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) $2,434
B) $2,344
C) $2,888
D) $2,940
Correct Answer:
Verified
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