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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 $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: Casting Actual results Direct labor hours used Machine hours used Finishing Department Department 10 The cost for direct labor is $34 per direct labor hour and the cost of the direct matrials used by Job A216 is $1,700 How much manufacturing overhead would be allocated to Job A216 using the departmental overhead rates? OA. $283 O B. $425 O C. $362 O D. $1,072
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