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 | $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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