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:

Accurate

Describes information, measurements, or results that are exact, precise, and free from errors or mistakes.

Cent

A monetary unit equal to one hundredth of a larger unit, such as a dollar or euro.

Milligrams

A unit of mass equal to one thousandth of a gram, used primarily to measure small quantities of material.

Significant Figures

The digits in a number that are meaningful in terms of accuracy and precision, often used in scientific measurements.