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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 $2,600,000 $1,900,000
Direct labor $800,000 $800,000
Direct labor hours 50,000 50,000
Machine hours 110,000 130,000
Units produced 59,000 32,000
Product X
Overhead -- --
Direct labor $14,032 $2,304
Direct labor hours 877 144
Machine hours 1,080 830
Units produced 580 570

Using a departmental allocation system with units produced as the cost driver in Department 1 and direct labor as the cost driver in Department 2, what was the allocation to Product X?

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