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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 | $3,400,000 | - |
Direct labor | $960,000 | $13,328 |
Direct labor hours | 60,000 | 833 |
Machine hours | 110,000 | 1,000 |
Units produced | 59,000 | 820 |
Department Y | ||
Overhead | $1,900,000 | - |
Direct labor | $960,000 | $3,744 |
Direct labor hours | 60,000 | 234 |
Machine hours | 140,000 | 850 |
Units produced | 50,000 | 820 |
1) Using a departmental allocation system with machine hours as the cost driver in Department X and direct labor hours as the cost driver in Department Y, what was the allocation to Product 1 [round rate(s) to the nearest cent]?
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