Question
A company produces two products, Product X and Product Y. During the year, the company estimates that it will produce 5,000 units of Product X
A company produces two products, Product X and Product Y. During the year, the company estimates that it will produce 5,000 units of Product X requiring a total of 1,600 labor hours and 2,500 units of Product Y requiring a total of 400 labor hours. Estimated overhead costs at the beginning of the year are $20,000. Actual overhead costs for the year are $24,000. Product X actually uses 1,800 labor hours to produce 5,200 units, and Product Y uses 200 labor hours to produce 1,200 units. If overhead cost is allocated based on direct labor hours, how much overhead cost is allocated to Product Y?
A-$2,400
B-$2,000
C-$20,000
D-$12,000
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