Homework Answers
Solution:
| Allocation rate | |
| Total Overhead (5700000+2200000) | 7900000 |
| /Total Direct Labor hours (60000+50000) | 110000 |
| Allocation Rate | 71.82 |
| Overhead allocated to Product X | |
| Actual Labor Hours for Product X (816+232) | 1048 |
| Allocation Rate | 71.82 |
| Overhead allocated to Product X | 75267 |
Hence option B is correct.
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