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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 | $6,100,000 | - |
Direct labor | $960,000 | $11,680 |
Direct labor hours | 60,000 | 730 |
Machine hours | 110,000 | 1,030 |
Units produced | 54,000 | 700 |
Department 2 | ||
Overhead | $2,000,000 | - |
Direct labor | $960,000 | $4,400 |
Direct labor hours | 60,000 | 275 |
Machine hours | 140,000 | 860 |
Units produced | 43,000 | 700 |
Using a departmental allocation system with direct labor hours as the cost driver in Department 1 and machine hours as the cost driver in Department 2, what was the allocation to Product X [round rate(s) to the nearest cent]?
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