Question
X Company has two production departments. Listed below is budgeted information for 2022 for the two departments, and actual information for one of its
X Company has two production departments. Listed below is budgeted information for 2022 for the two departments, and actual information for one of its products during the year: All Products Department X Overhead $4,200,000 Department Y $2,100,000 Direct labor $800,000 $800,000 Direct labor hours 50,000 50,000 Machine hours 100,000 130,000 Units produced 56,000 42,000 Product 1 Overhead Direct labor $12,112 $2,352 Direct labor hours 757 147 Machine hours 1,080 800 Units produced 840 520 3. If the company had used a plantwide cost allocation system in 2022, with direct labor hours as the cost driver, what would have been the allocation to Product 1? OA: $30,911 OB: $34,930 OC: $39,471 OD: $44,602 OE: $50,400 OF: $56,952 Submit Answer Tries 0/99 4. If the company had used a departmental cost allocation system in 2022, with units produced as the cost driver in Department X and direct labor as the cost driver in Department Y, what would have been the allocation to Product 1? OA: $10,790 OB: $15,646 OC: $22,686 OD: $32,895 OE: $47,698 OF: $69,162
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