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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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