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X Company uses a plantwide overhead allocation system, with direct labor cost as the cost driver. Budgeted overhead for the year is $867,000. The following
X Company uses a plantwide overhead allocation system, with direct labor cost as the cost driver. Budgeted overhead for the year is $867,000. 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 | 1,000 | 33,000 | 3,100 |
Direct labor hours per unit | 8 | 4 | 3 |
Direct labor wage rate | $17.00 | $24.00 | $26.00 |
How much overhead was allocated to Product Z [round the overhead rate to two decimal places]?
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