Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1, 2020, X Company estimated the following costs for the year: Direct materials $54,200 Direct labor 72,800 Factory supplies 19,700 Factory maintenance 29,700
On January 1, 2020, X Company estimated the following costs for the year:
Direct materials | $54,200 |
Direct labor | 72,800 |
Factory supplies | 19,700 |
Factory maintenance | 29,700 |
Marketing research | 44,600 |
Factory rent | 44,800 |
Sales salaries | 43,000 |
Factory insurance | 62,000 |
X Company also estimated 5,200 direct labor hours and 60,000 machine hours for the year.
The company uses a plantwide overhead allcoation system, with direct labor cost as the cost driver.
If the direct labor cost for one of its products was $7,280, and the product required 624 direct labor hours, how much overhead was allocated to it (round overhead rate(s) to two decimal places)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started