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 | $3,900,000 | -- |
| Direct labor hours | 60,000 | 868 |
| Machine hours | 120,000 | 1,020 |
| Units produced | 60,000 | 640 |
| Department B | ||
| Overhead | $2,100,000 | -- |
| Direct labor hours | 50,000 | 281 |
| Machine hours | 120,000 | 850 |
| Units produced | 30,000 | 640 |
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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Financial Accounting
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
5th edition
1259914895, 978-1259914898
