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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 X Overhead Direct labor Direct labor hours Machine hours Units produced Department 1 $3,500,000 $680,000 40,000 120,000 53,000 Department 2 $2,100,000 $850,000 50,000 120,000 35,000 $12,444 $3,043 732 179 1,040 680 810 730 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 X? A: $19.666 B: $23.033 C: $26.948 OD: $31.529 E: $36,089 F: $43.160 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 1 and direct labor as the cost driver in Department 2. what would have been the allocation to Product X? A: $56,095 B: $65,631 OC: $76.789 OD: $89,843 OE: $105,116 OF: $122.986 Submit Answer Tries 0/99
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