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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 finishing
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
$59
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 | 7 | 11 |
Machine hours used | 4 | 5 |
The cost for direct labor is
$32
per direct labor hour and the cost of the direct matrials used by Job A216 is $1,800.
How much manufacturing overhead would be allocated to Job A216 using the departmental overhead rates? A.
$1,713
B.
$505
C.
$566
D.
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