Crane Fabrication Allocates Manufacturing Overhead to Each Job Using Departmental

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

Correct Answer:

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