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Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Crane's operations are divided into a metal casting department and a metal
Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Crane's operations are divided into a metal casting department and a metal 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 $26 per direct labor hour. Job A216 used the following direct labor hours and machine hours in the two departments: Actual results Direct labor hours used Machine hours used Casting Finishing Department Department 10 3 5 2 The cost for direct labor is $34 per direct labor hour and the cost of the direct matrials used by Job A216 is $1700. How much manufacturing overhead would be allocated to Job A216 using the departmental overhead rates? $362 O $1072 O $425 $283
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