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Questions 3 and 4 are based on the following information: X Company has two production departments. Listed below is budgeted information for 2022 for
Questions 3 and 4 are based on the following information: X Company has two production departments. Listed below is budgeted information for 2022 for the two departments, and actual information for one of its products during the year: All Products Overhead Direct labor Direct labor hours Machine hours Units produced Product I Overhead Direct labor. Direct labor hours Machine hours Units produced $850,000 Department X $7,800,000 Department Y $2,000,000 $850,000 50,000 50,000 100,000 140,000 54,000 35,000 $12,682 $2,125 746 125 1,000 510 830 850 3. If the company had used a plantwide cost allocation system in 2022, with direct labor hours as the cost driver, what would have been the allocation to Product 1? A: $40,598 B: $58,868 OC: $85,358 OD: $123,7690 E: $179,465 OF: $260,225 Submit Answer Tries 0/99 4. If the company had used a departmental cost allocation system in 2022, with direct labor as the cost driver in Department X and units produced as the cost driver in Department Y, what would have been the allocation to Product 17 A: $164,990 B: $193,038 C: $225,854 OD: $264,250 OE: $309,172 OF: $361,731 Submit Answer Tries 0/99 Send Feedback
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