Crane Fabrication Allocates Manufacturing Overhead to Each Job Using Departmental

question 239

Multiple Choice

Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Crane's operations are divided into a metal casting department and a metal finishing department. The casting department uses a departmental overhead rate of $51 per machine hour, while the finishing department uses a departmental overhead rate of $26 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 $34 per direct labor hour and the cost of the direct matrials used by Job A216 is $1700.
How much manufacturing overhead would be allocated to Job A216 using the departmental overhead rates?

• A)$362
• B)$425
• C)$1072
• D)$283

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Definitions:

Frequency

In general terms, the rate at which something occurs over a particular period of time or in a given sample.

Actor-observer Bias

A cognitive bias that affects the way we attribute causes to our own behaviors versus those of others, often attributing our own actions to situational factors while attributing others' actions to their personality or character.

Self-serving Bias

Self-serving bias is a common cognitive bias that leads individuals to attribute their successes to internal factors while attributing failures to external factors, protecting self-esteem.

Recency Effect

The phenomenon of better remembering the most recent information presented in a series of data or events.