Ryan fabrication allocates manufacturing overhead to each job using departmental overhead rates. ryan’s operations are divided
Ryan Fabrication allocates manufacturing overhead to each job using departmental overhead rates. The operations are divided into a metal casting department and a metal finishing department. The casting department applies a departmental overhead rate of $52 per machine hour, while the finishing department applies a departmental overhead rate of $28 per direct labor hour.
Job A216 used the following resources in the two departments:
- Casting Department:
- Direct labor hours used: 5
-
Machine hours used: 4
-
Finishing Department:
- Direct labor hours used: 12
- Machine hours used: 3
The cost for direct labor is $32 per direct labor hour, and the cost of 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?
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