X Company has two production departments. Listed below is budgeted information for 2022 for the two departments, and actual information for one of its products during the year:
All Products
Overhead
Direct labor
Direct labor hours
Machine hours
Units produced
Product X
Overhead
Direct labor
Direct labor hours
Machine hours
Units produced
Department 1
$4,500,000
$800,000
50,000
100,000
56,000
$13,024
814
1,030
870
Department 2
$1,800,000
$640,000
40,000
120,000
46,000
$3,872
242
870
840
3. If the company had used a plantwide cost allocation system in 2022, with machine hours as the cost driver, what would have been the allocation to Product X?
A. $17,831 B. $22,289 C. $27,861 D. $34,826 E. $43,533 F. $54,416
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4. If the company had used a departmental cost allocation system in 2022, with units produced as the cost driver in Department 1 and direct labor as the cost driver in Department 2, what would have been the
allocation to Product X?
A. $36,851 B. $43,115 C. $50,445 D. $59,021 E. $69,054 F. $80,794
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