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On January 1, 2021, X Company estimated the following costs for the year: Direct materials $58,800 Customer relations 78,400 Direct labor 78,400 Factory supplies 21,200
On January 1, 2021, X Company estimated the following costs for the year:
Direct materials | $58,800 |
Customer relations | 78,400 |
Direct labor | 78,400 |
Factory supplies | 21,200 |
Factory maintenance | 28,200 |
Marketing research | 42,100 |
Factory rent | 42,900 |
Sales salaries | 47,000 |
Legal department costs | 78,400 |
Factory insurance | 64,700 |
The company also estimated that total direct labor hours for the year would be 5,600, and total machine hours would be 69,000.
The company finished Product A in June. It required 616 direct labor hours at a cost of $15,680. It also required 5,520 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]?
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