Question
Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Ryan's operations are divided into a metal casting department and a metal finishing
Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Ryan's operations are divided into a metal casting department and a metal finishing department. The casting department uses a departmental overhead rate of $52 per machine hour, while the finishing department uses a departmental overhead rate of $28 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 | 5 | 12 |
Machine hours used | 4 | 3 |
The cost for direct labor is $32 per direct labor hour and the cost of the direct materials used by Job A216 is $1,800.
Q1) How much manufacturing overhead would be allocated to Job A216 using the departmental overhead rates?
Q2) What was the total cost of Job A216 if Ryan Fabrication used the departmental overhead rates to allocate manufacturing overhead?
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