Crane Fabrication Allocates Manufacturing Overhead to Each Job Using Departmental

question 255

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 $25 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 $42 per direct labor hour and the cost of the direct materials used by Job A216 is $2000.
What was the total cost of Job A216 if Crane Fabrication used the departmental overhead rates to allocate manufacturing overhead?

• A)$2378
• B)$2924
• C)$3427
• D)$3682

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