Question

X Company has two production departments, A and B. The following is budgeted information for all of its products in 2019, and actual information for one of them, Product X: - - All Products Product X $3,200,000 50,000 798 110,000 1,010 53,000 850 Department A Overhead Direct labor hours Machine hours Units produced Department B Overhead Direct labor hours Machine hours Units produced $1,800,000 40,000 140,000 45,000 163 880 850 Using a single-driver allocation system, with direct labor hours as the driver, how much overhead was allocated to Product X [round overhead rate(s) to two decimal places]?

Answer 1

Overhead eate Dept A $ 3,200,000 3120000 50.000 $64 per how to Dept B 2 $ 1,800.000 40.000 $45 per hoc Product & Overhead cast Depault A -798%$64 Dept B - 163 × $45 - $51,072 $ 7335 $ 58,407 Overhead Allocated = $58,407