Question
Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The company's operations are divided into a casting department and a
Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The company's operations are divided into a casting department and a finishing department. The casting department uses a departmental overhead rate of $57 per machine hour, while the finishing department uses a departmental overhead rate of $30 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 Machine hours used 7 4 14 3 The cost for direct labor is $32 per direct labor hour and the cost of the direct materials used by Job A216 is $1,700. What was the total cost of Job A216 if Cast Iron Fabrication used the departmental overhead rates to allocate manufacturing overhead? A. $2,372 B. $1,924 C. $3,020 D. $3,191
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