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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 $60 per machine hour, while the Cutting Department uses a departmental overhead rate of $10 per direct labor hour. Job 425 used the following direct labor hours and machine hours in the two departments: Actual results Direct labor hours used Machine hours used Bending Department 10 12 Cutting Department 3 7 The cost for direct labor is $30 per direct labor hour and the cost of the direct materials used by Job 425 is $1,500. If Green Desk used the departmental overhead rates to allocate manufacturing overhead, what was the total cost of Job 425? A. $2,820 B. $1,920 C. $2,640 D. $1,890
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