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klio [65]
3 years ago
8

X Company has two production departments, A and B. The following is budgeted information for all of its products in 2019, and ac

tual information for one of them, Product X:
Department A All Products Product X
Overhead $4,300,000 --
Direct labor hours 50,000 724
Machine hours 110,000 1,000
Units produced 54,000 590
Department B
Overhead $2,200,000 --
Direct labor hours 60,000 157
Machine hours130,000 880
Units produced 40,000 590
Required:
a. 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]?
Business
1 answer:
Zina [86]3 years ago
6 0

Answer:

Explanation:

Overhead allocated to Product X = Department A overhead cost+ Department B overhead cost

=  $51,157.84+$5755.62=

= $56,913

Calculations:

Using a single-driver allocation system, with direct labor hours as the driver, how much overhead was allocated to Product X:

Department A's Overhead rate per labor hour = Overhead costs/Total direct labor hours  = $4300000/60000 hours = $71.66 per hour

Overhead (Department A) = $71.66per hour*724 labor hours

= $51,157.84

Department B's Overhead rate per labor hour = Overhead costs/Total direct labor hours  = $2200000/60000 hours = $36.66 per hour

Overhead (Department A) = $36.66 per hour*157 labor hours

= $5755.62

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Answer:

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3 years ago
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Answer:

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Explanation:

KSF

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KSFs represent areas organisations are to attend to based on the views of the market in order to achieve their goals. It could be in form strengths to maximize, weaknesses to address, aspects to take advantage of among others.

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1) True

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