Use the information below to answer the following question(s):
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 labour hour. Job A216 used the following direct labour hours and machine hours in the two departments:
The cost for direct labour is $32 per direct labour 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

Question

Use the information below to answer the following question(s):
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 labour hour. Job A216 used the following direct labour hours and machine hours in the two departments:
  The cost for direct labour is $32 per direct labour 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

Quizplus · Accepted Answer

The correct choice is A) $544. This is based on the calculation using the departmental overhead rates specific to the job and the departments involved.

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