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On January 1, 2021, X Company estimated the following costs for the year: Direct materials $62,500 Customer relations 96,900 Direct labor 96,900 Factory supplies 18,300
On January 1, 2021, X Company estimated the following costs for the year:
Direct materials | $62,500 |
Customer relations | 96,900 |
Direct labor | 96,900 |
Factory supplies | 18,300 |
Factory maintenance | 29,800 |
Advertising | 44,300 |
Factory rent | 40,000 |
Sales salaries | 44,000 |
Legal department costs | 96,900 |
Factory insurance | 62,400 |
The company also estimated that total direct labor hours for the year would be 5,700, and total machine hours would be 66,000.
The company finished Product A in June. It required 684 direct labor hours at a cost of $9,690. It also required 5,940 machine hours.
If X Company uses a plantwide system to allocate overhead costs, with direct labor cost as the cost driver, how much overhead was allocated to Product A [round overhead rate(s) to two decimal places]?
On January 1, 2021, X Company estimated the following costs for the year: $62,500 Direct materials Customer relations 96,900 Direct labor 96,900 Factory supplies 18,300 Factory maintenance 29,800 Advertising 44,300 Factory rent 40,000 Sales salaries 44,000 Legal department costs Factory insurance 96,900 62,400 The company also estimated that total direct labor hours for the year would be 5,700, and total machine hours would be 66,000. The company finished Product A in June. It required 684 direct labor hours at a cost of $9,690. It also required 5,940 machine hours. If X Company uses a plantwide system to allocate overhead costs, with direct labor cost as the cost driver, how much overhead was allocated to Product A [round overhead rate(s) to two decimal places]? Submit Answer Incorrect. Tries 2/3 Previous TriesStep by Step Solution
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