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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 $51 per machine hour, while the finishing department uses a departmental overhead rate of $23 per direct labor hour. Job A216 used the following direct labor hours and machine hours in the two departments: Casting Actual results Department Finishing Department Direct labor hours used Machine hours used 5 2 13 7 The cost for direct labor is $32 per direct labor hour and the cost of the direct materials used by Job A216 is $2,000. How much manufacturing overhead would be allocated to Job A216 using the departmental overhead rates?
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