Question
GG Manufacturing allocates manufacturing overhead to each job using departmental overhead rates. The molding department uses a departmental overhead rate of $57 per machine hour,
GG Manufacturing allocates manufacturing overhead to each job using departmental overhead rates. The molding department uses a departmental overhead rate of $57 per machine hour, while the finishing department uses a departmental overhead rate of $21 per direct labor hour. A job used the following direct labor hours and machine hours in the two departments.
Molding Dept. 5 direct labor hours used | 2 machine hours used
Finishing Dept. 11 direct labor hours used | 4 machine hours used
The cost for direct labor is $38 per direct labor hour and the cost of the direct materials used by the job is $1700.
What was the total cost of the job if GG Manufacturing used the departmental overhead rates to allocate manufacturing overhead?
A) $1928
B) $2306
C) $2653
D) $2824
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