Question
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: Department X All Products Product 1 Overhead $6,500,000 - Direct labor $850,000 $13,889 Direct labor hours 50,000 817 Machine hours 120,000 1,100 Units produced 57,000 840 Department Y Overhead $1,900,000 - Direct labor $680,000 $1,921 Direct labor hours 40,000 113 Machine hours 130,000 820 Units produced 30,000 840
Using a plantwide allocation system with direct labor hours as the cost driver, what was the allocation to Product 1?
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