Ryan Fabrication Allocates Manufacturing Overhead to Each Job Using Departmental

question 144

Multiple Choice

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: 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.
What was the total cost of Job A216 if Ryan Fabrication used the departmental overhead rates to allocate manufacturing overhead?

• A)$2,434
• B)$2,344
• C)$2,888
• D)$2,940

Understand the role of vertical and horizontal structures within an organization.

Comprehend the purpose and types of managerial accounting reports.

Distinguish between historical and projected/estimated data usage in managerial reports.

Grasp the significance of direct materials, direct labor, and factory overhead costs in product costing.

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Definitions:

Rational Emotive Behavior Therapy

A comprehensive, active-directive, philosophically and empirically based psychotherapy which focuses on resolving emotional and behavioral problems and disturbances to enable individuals to lead happier and more fulfilling lives.

Unnecessary Emotional Problems

Difficulties or disturbances in emotional functioning that could be avoided or are created without significant cause.

Unstated Belief

An implicit conviction or assumption that influences one's attitudes and behaviors without being directly expressed or acknowledged.