Question: 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:
| Department X |
All Products |
Product 1 |
| Overhead |
$3,400,000 |
- |
| Direct labor |
$960,000 |
$13,328 |
| Direct labor hours |
60,000 |
833 |
| Machine hours |
110,000 |
1,000 |
| Units produced |
59,000 |
820 |
| Department Y |
|
| Overhead |
$1,900,000 |
- |
| Direct labor |
$960,000 |
$3,744 |
| Direct labor hours |
60,000 |
234 |
| Machine hours |
140,000 |
850 |
| Units produced |
50,000 |
820 |
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 [round rate(s) to the nearest cent]?