Question
On January 1, 2021, X Company estimated the following costs for the year: Direct materials$61,700 Direct labor96,900 Factory supplies19,800 Factory maintenance28,000 Advertising46,200 Factory rent43,800 Sales
On January 1, 2021, X Company estimated the following costs for the year:
Direct materials$61,700
Direct labor96,900
Factory supplies19,800
Factory maintenance28,000
Advertising46,200
Factory rent43,800
Sales salaries48,000
Factory insurance59,600
The company also estimated 5,700 direct labor hours and 66,000 machine hours for the year.
X company uses a plantwide overhead allocation system, with direct labor hours as the cost driver. The direct labor cost for one of the products that it produced in 2021, Product A, was $19,380, and it required 798 direct labor hours and 5,280 machine hours.
How much overhead was allocated to Product A [round overhead rate(s) to two decimal places]?
Step by Step Solution
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