Two departments, and actual information for one of its products, Product 1: Department X: All Products Product 1 Overhead $6,800,000 Direct labor $680,000 $13,583 Direct labor hours 40,000 799 Machine hours 110,000 1,100 Units produced 60,000 860 Department Y: Overhead $2,100,000 Direct labor $850,000 $4,879 Direct labor hours 50,000 287 Machine hours 120,000 890 Units produced 35,000 860 Using a plantwide allocation system with machine hours as the cost driver, what was the allocation to Product 1?

Two departments, and actual information for one of its products, Product 1: Department X: All Products Product 1 Overhead $6,800,000 Direct labor $680,000 $13,583 Direct labor hours 40,000 799 Machine hours 110,000 1,100 Units produced 60,000 860 Department Y: Overhead $2,100,000 Direct labor $850,000 $4,879 Direct labor hours 50,000 287 Machine hours 120,000 890 Units produced 35,000 860 Using a plantwide allocation system with machine hours as the cost driver, what was the allocation to Product 1?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 2BE: Support department allocations The centralized computer technology department of Hardy Company has...

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