Question
X Company uses a plantwide overhead allocation system, with direct labor hours as the cost driver. Budgeted overhead for the year is $923,000. The following
X Company uses a plantwide overhead allocation system, with direct labor hours as the cost driver. Budgeted overhead for the year is $923,000. The following annual budgeted and actual information is available for the only three products that it produces - X, Y, Z:
| X | Y | Z | |
| Units of production | 950 | 37,900 | 3,300 |
| Direct labor hours per unit | 7 | 2 | 5 |
| Direct labor wage rate | $16.00 | $21.00 | $26.00 |
How much overhead was allocated to Product Z?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
