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Green Desk uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Bending and Cutting. The Bending Department uses
Green Desk uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Bending and Cutting. The Bending Department uses a departmental overhead rate of $50 per machine hour, while the Cutting Department uses a departmental overhead rate of $20 per direct labor hour. Job 425 used the following direct labor hours and machine hours in the two departments: Actual results Bending Department Cutting Department Direct labor hours used Machine hours used 9 11 5 9 The cost for direct labor is $40 per direct labor hour and the cost of the direct materials used by Job 425 is $1,600. If Green Desk used the departmental overhead rates to allocate manufacturing overhead, what was the total cost of Job 425? A. $2,850 B. $2,810 C. $2,160 D. $2,200
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