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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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