Question
X Company has two production departments, A and B. The following is budgeted information for all of its products in 2019, and actual information for
X Company has two production departments, A and B. The following is budgeted information for all of its products in 2019, and actual information for one of them, Product X:
Department A all products Product X
Overhead $6,700,00 --
Direct Labor Hours 40,000 784
Machine Hours 100,000 1,080
units produced 54,000 860
Department B
OH $1,800,000 --
DLH 50,000 172
Machine Hours 130,000 840
units produced 42,000 860
Using a single-driver allocation system, with direct labor hours as the driver, how much overhead was allocated to Product X [round overhead rate(s) to two decimal places]?
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