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X Company has two production departments, 1 and 2. Listed below is budgeted information for the two departments, and actual information for one of its
X Company has two production departments, 1 and 2. Listed below is budgeted information for the two departments, and actual information for one of its products, Product X:
All Products | Department 1 | Department 2 |
Overhead | $3,400,000 | $2,200,000 |
Direct labor | $800,000 | $800,000 |
Direct labor hours | 50,000 | 50,000 |
Machine hours | 110,000 | 130,000 |
Units produced | 56,000 | 31,000 |
Product X | ||
Overhead | -- | -- |
Direct labor | $13,584 | $3,840 |
Direct labor hours | 849 | 240 |
Machine hours | 1,060 | 820 |
Units produced | 770 | 620 |
Using a departmental allocation system with direct labor as the cost driver in Department 1 and units produced as the cost driver in Department 2, what was the allocation to Product X?
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