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 $57 per machine hour, while the finishing department uses a departmental overhead rate of $21 per direct labor hour Job A216 used the following direct labor hours and machine hours in the two departments: Casting Finishing Actual results Department Department Direct labor hours used 6 14 Machine hours used 7 The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job A216 is $1,800 What was the total cost of Job A216 il Cast Iron Fabrication used the departmental overhead ratons to allocato manufacturing overhead? A. $3,136 B. $2,965 C. $2,150 OD. $2,500
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