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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:

Department X

All Products

Product 1

Overhead

$5,500,000

-

Direct labor

$900,000

$10,815

Direct labor hours

60,000

721

Machine hours

110,000

1,000

Units produced

58,000

510

Department Y

Overhead

$2,100,000

-

Direct labor

$900,000

$4,080

Direct labor hours

60,000

272

Machine hours

120,000

820

Units produced

49,000

510

Using a plantwide allocation system with machine hours as the cost driver, what was the allocation to Product 1?

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