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Allocating overhead Cast Iron Fabrication allocates manufacturing overhead to each job using deportmental overhead rates. The companys operations are divided into a casting department and
Allocating overhead
Cast Iron Fabrication allocates manufacturing overhead to each job using deportmental overhead rates. The companys operations are divided into a casting department and a finishing departmene The casting department uses a departmental overhead rate of $6 per machine hour, while the finishing department uses a departmertal ovechead rate of $26 per 6 rect labor hout. Job A216 used the following direct labor hours and machine hours in the two departments: The cost foe direct labor is $37 per direct labor hour and the cost of the direct materals used by Job A216 is $1,600. What was the total cost of Job A216 if Cast iron Fabrication used the departmental overhesd rates to alocate manufacturing overhesd? A. $2.974 B. $1,896 C. $2,750 D. $2.266 Step by Step Solution
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