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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 Overhead Direct labor Direct labor hours Machine hours Units produced Product X Overhead Direct labor Direct labor hours Department 1 $5,300,000 Department 2 $2,200,000 $640,000 $800,000 40,000 50,000 110,000 140,000 59,000 34,000 $14,368 $2,608 898 163 860 750 Machine hours Units produced 1,040 760 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 X? OA: $88,413 OB: $117,589 C: $156,394 OD: $208,004 E: $276,645 OF: $367,938 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 1 and direct labor as the cost driver in Department 2, what would have been the allocation to Product X? OA: $46,270 B: $52,286 OC: $59,083 OD: $66,764 E: $75,443 OF: $85,250 Submit Answer Tries 0/99
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