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On January 1, 2021, X Company estimated the following costs for the year: Direct materials $59,000 Customer relations 78,000 Direct labor 78,000 Factory supplies 19,900
On January 1, 2021, X Company estimated the following costs for the year:
Direct materials | $59,000 |
Customer relations | 78,000 |
Direct labor | 78,000 |
Factory supplies | 19,900 |
Factory supervision | 29,100 |
Marketing research | 46,900 |
Factory rent | 45,600 |
Sales salaries | 40,000 |
Legal department costs | 78,000 |
Factory insurance | 68,900 |
The company also estimated that total direct labor hours for the year would be 5,200, and total machine hours would be 59,000.
The company finished Product A in June. It required 572 direct labor hours at a cost of $7,800. It also required 3,540 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]?
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