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On January 1, 2020, X Company estimated the following costs for the year: Direct materials $60,900 Direct labor 81,200 Factory supplies 22,000 Factory maintenance 30,700
On January 1, 2020, X Company estimated the following costs for the year:
Direct materials | $60,900 |
Direct labor | 81,200 |
Factory supplies | 22,000 |
Factory maintenance | 30,700 |
Marketing research | 40,600 |
Factory rent | 45,900 |
Sales salaries | 41,000 |
Factory insurance | 69,900 |
X Company also estimated 5,800 direct labor hours and 60,000 machine hours for the year.
The company uses a plantwide overhead allcoation system, with direct labor hours as the cost driver.
If the direct labor cost for one of its products was $12,180, and the product required 754 direct labor hours, how much overhead was allocated to it (round overhead rate(s) to two decimal places)?
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