Question: Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The company's operations are divided into a casting department and a finishing
Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The company's operations are divided into a casting department and a finishing department. The casting department uses a departmental overhead rate of $50 per machine hour, while the finishing department uses a departmental overhead rate of $23 per direct labor hour. Job A216 used the following direct labor hours and machine hours in the two departments: The cost for direct labor is $33 per direct labor hour and the cost of the direct materials used by Job A216 is $1,900. What was the total cost of Job A216 if Cast Iron Fabrication used the departmental overhead rates to allocate manulacturing overhead? A. $2,824 B. $2,494 c. $3,124 D. $2.197
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