Question 3 X Company manufactures several products. It currently uses a plantwide overhead allocation system, with machine hours as the cost driver. Estimated machine hours for 2017 were 230,000; estimated overhead was $198,000.

Assume the following information for one of its products, Product A, produced in 2017:

Direct materials $69,500

Direct labor $16,155

Direct labor hours 1,077

Machine hours 1,930

3. How much overhead was allocated to Product A [round overhead rate(s) to two decimal places]?

Question 4 X Company is considering switching to a departmental allocation system. It has two departments, and would use direct labor hours as the cost driver in Department 1 and machine hours as the cost driver in Department 2. The following are budgeted costs and driver amounts for these two departments in 2017: Department 1 Department 2

Direct materials $18,700 $50,800

Direct labor $900,000 $750,000

Overhead $110,000 $88,000

Direct labor hours 60,000 50,000

Machine hours 100,000 130,000

Assume the following information for Product B in 2017:

Department 1 Department 2

Direct materials $935 $5,080

Direct labor $12,825 $3,330

Direct labor hours 855 222

Machine hours 1,090 840

4. If X Company had used the departmental system, how much overhead would have been allocated to Product B [round overhead rate(s) to two decimal places]?