X Company has two production departments, X and Y. Listed below is budgeted information for the two departments, and actual information for one of its products, Product 1:

Using a departmental allocation system with machine hours as the cost driver in Department X and direct labor hours as the cost driver in Department Y, what was the allocation to Product 1?

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Department X All Products Product 1 $3,400,000 Overhead $960,000 $13,328 Direct labor Direct labor hours 60,000 833 Machine hours 110,000 1,000 Units produced 59,000 820 Department Y $1,900,000 Overhead $960,000 $3,744 Direct labor Direct labor hours 60,000 234 Machine hours 140,000 850 Units produced 50,000 820