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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 $806,000. The following
X Company uses a plantwide overhead allocation system, with direct labor hours as the cost driver. Budgeted overhead for the year is $806,000. The following annual budgeted and actual information is available for the only three products that it produces - A, B, C:
A | B | C | |
Units of production | 740 | 32,700 | 3,200 |
Direct labor hours per unit | 7 | 2 | 3 |
Direct labor wage rate | $18.00 | $24.00 | $27.00 |
How much overhead was allocated to Product C [round the overhead rate to two decimal places]?
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