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

Cast Iron Fabrication allocates manufacturing overhead to each job using departmental overhead

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 $57 per machine hour, while the finishing department uses a departmental overhead rate of $25 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 Machine hours used 7 3 13 3 The cost for direct labor is $37 per direct labor hour and the cost of the direct materials used by Job A216 is $1,700. What was the total cost of Job A216 if Cast Iron Fabrication used the departmental overhead rates to allocate manufacturing overhead? OA. $2,936 OB. $1,922 OC. $3,164 OD. $2,440

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