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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:
Department 1 | All Products | Product X |
Overhead | $7,400,000 | - |
Direct labor | $800,000 | $11,280 |
Direct labor hours | 50,000 | 705 |
Machine hours | 120,000 | 1,100 |
Units produced | 55,000 | 650 |
Department 2 | ||
Overhead | $2,000,000 | - |
Direct labor | $640,000 | $3,136 |
Direct labor hours | 40,000 | 196 |
Machine hours | 140,000 | 800 |
Units produced | 34,000 | 650 |
Using a departmental allocation system with machine hours as the cost driver in Department 1 and direct labor hours as the cost driver in Department 2, what was the allocation to Product X [round rate(s) to twodecimal places]?
Incorrect. |
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