Question

Crane Fabrication allocates manufacturing overhead to each job using departmental overhead rates. Crano's operations are divided into a metal casting department and a metal finishing department. The casting department uses a departmental overhead rate of $57 per machine hour, while the finishing department uses a departmental overhead rate of $30 per direct labor hour. Job A216 used the following direct labor hours and machine hours in the two departments: Casting Finishing Actual results Department Department Direct labor hours used 10 Machine hours used 3 The cost for direct labor is $41 per direct labor hour and the cost of the direct materials used by Job A216 is $1,600. What was the total cost of Job A216 if Crane Fabrication used the departmental overhead rates to allocate manufacturing overhead? O A. $1,846 OB. $2,809 OC. $3,094 D. $2,338

Answer 1

Answer is (B) $2,809 Explanation Calculation of total cost of Job A216 Particulars $ $ Direct Materials 1,600 Direct Labour 328 410 738 > - Casting Department (8 hours x $41 per hour finishing Department (io hours x $41 per hour] Manufacturing overheads -- casting Department [3. machine hours x $59) - finishing Department [10 labour hours x $30) 171 300 471 Therefore, total cost of Job A216 is $2,809 Please feel free to ask any queries and do give a thumbsup_j[the solution was satisfactory _Thank you.