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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 $884,000. The following
X Company uses a plantwide overhead allocation system, with direct labor hours as the cost driver. Budgeted overhead for the year is $884,000. 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 | 500 | 25,400 | 4,600 |
Direct labor hours per unit | 7 | 3 | 4 |
Direct labor wage rate | $18.00 | $20.00 | $25.00 |
How much overhead was allocated to Product Y?
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