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X Company is using a plantwide system to allocate overhead costs in 2022, with direct labor hours as the cost driver. Its estimated overhead cost
X Company is using a plantwide system to allocate overhead costs in 2022, with direct labor hours as the cost driver. Its estimated overhead cost function for 2022 is $3.33 X + $9,100, where X is direct labor hours.
The following are additional estimates for the entire year:
Direct materials | $65,600 |
Direct labor | $83,200 |
Direct labor hours | 5,200 |
Machine hours | 19,200 |
The following are actual results for a particular product that was produced in January of 2022:
Direct materials | $15,088 |
Direct labor | $6,656 |
Direct labor hours | 936 |
Machine hours | 1,728 |
Using the plantwide system, how much overhead was allocated to this product [round overhead rate(s) to two decimal places]?
A: $4,755 | B: $5,944 | C: $7,430 | D: $9,287 | E: $11,609 | F: $14,511 |
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