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Problem - X Company uses a plant wide overhead allocation system, with direct labor cost as the cost driver. Budgeted overhead for the year is $998,000. The following annual budgeted and actual information is available for the only three products that it produces - A, B, C:
A
B
C
Units of production
850
26,300
2,500
Direct labor hours per unit
8
4
5
Direct labor wage rate
$17.00
$24.00
$25.00
Required - How much overhead was allocated to Product C?
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Access eBay's, February 17, 2010, filing of its 10-K report for the year ended December 31, 2009, at www.sec.gov.
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