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X Company has two production departments, X and Y. Listed below is budgeted information for the two departments, and actual information for one of its
X Company has two production departments, X and Y. Listed below is budgeted information for the two departments, and actual information for one of its products, Product 1:
All Products | Department X | Department Y |
Overhead | $2,000,000 | $1,800,000 |
Direct labor | $680,000 | $850,000 |
Direct labor hours | 40,000 | 50,000 |
Machine hours | 100,000 | 120,000 |
Units produced | 52,000 | 34,000 |
Product 1 | ||
Overhead | -- | -- |
Direct labor | $12,529 | $2,754 |
Direct labor hours | 737 | 162 |
Machine hours | 1,020 | 900 |
Units produced | 820 | 840 |
Using a departmental allocation system with units produced as the cost driver in Department X and direct labor as the cost driver in Department Y, what was the allocation to Product 1?
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