Ryan Fabrication Allocates Manufacturing Overhead to Each Job Using Departmental

question 116

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.
How much manufacturing overhead would be allocated to Job A216 using the departmental overhead rates?

• A)$544
• B)$596
• C)$1,360
• D)$454

---

Definitions:

Correlated Objects

Items or variables that have a mutual relationship or connection, where changes in one are associated with changes in the other.

Causal Relationship

A connection between two events where one directly influences or causes the other.

Causal Arguments

Arguments that establish a cause-and-effect relationship between two or more things.

Inductive Argument

A type of reasoning in which the premises seek to supply strong evidence for (not absolute proof of) the truth of the conclusion.