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On January 1, 2021, X Company estimated the following costs for the year: Direct materials $59,400 Customer relations 96,000 Direct labor 96,000 Factory supplies 21,900
On January 1, 2021, X Company estimated the following costs for the year:
Direct materials | $59,400 |
Customer relations | 96,000 |
Direct labor | 96,000 |
Factory supplies | 21,900 |
Factory maintenance | 30,200 |
Advertising | 43,600 |
Factory rent | 45,600 |
Sales salaries | 46,000 |
Legal department costs | 96,000 |
Factory insurance | 66,500 |
The company also estimated that total direct labor hours for the year would be 6,000, and total machine hours would be 67,000.
The company finished Product A in June. It required 660 direct labor hours at a cost of $14,400. It also required 6,030 machine hours.
If X Company uses a plantwide system to allocate overhead costs, with direct labor hours as the cost driver, how much overhead was allocated to Product A [round overhead rate(s) to two decimal places]?
A: $9,640 | B: $11,279 | C: $13,196 | D: $15,439 | E: $18,064 | F: $21,135 |
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