.11 Sprint 9:09 PM Done 13 of 14 read. 36) Ryan Fabrication allocates manufactur

Question

.11 Sprint 9:09 PM Done 13 of 14 read. 36) Ryan Fabrication allocates manufacturing overhead to each job using 3 36) 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 labor hour. Job A216 used the following direct labor hours and machine hours in the two departments: Casting Finishing Actual results Direct labor hours used Machine hours The cost for direct labor is $32 per direct labor hour and the cost of the direct materials used by Job A216 is $1,800. What was the total cost of Job A216 if Ryan Fabrication used the departmental overhead rates to allocate manufacturing overhead? A) $2,344 B) $2,888 D) $2,940 4 ]

Explanation / Answer

Particulars Amount Direct material         1,800 Direct labour cost ((5+12=17)*32)            544 Overheads Casting dept (4*52)            208 Finishing dept (12*28)            336 Total         2,888 Therefore, correct option is B

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