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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 1 Overhead Direct labor Direct labor hours Department X $1,700,000 $750,000 50,000 Department Y $1,800,000 $750,000 50,000 120,000 60,000 130,000 $11,580 772 1,010 510 41,000 $3,795 253 Machine hours Units produced 870 560 3. If the company had used a plantwide cost allocation system in 2022, with machine hours as the cost driver, what would have been the allocation to Product 1? OA: $22,496 B: $26,320||OC: $30,794 OD: $36,029 E: $42,154 OF: $49,321 Submit Answer Tries 0/99 4. If the company had used a departmental cost allocation system in 2022, with units produced as the cost driver in Department X and direct labor as the cost driver in Department Y, what would have been the allocation to Product 1? OA: $12,785 OB: $14,448 OC: $16,326 OD: $18,448 OE: $20,846 OF: $23,556
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