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Question - X Company uses a plantwide overhead allocation system, with direct labor cost as the cost driver. Budgeted overhead for the year is $849,000. The following annual budgeted and actual information is available for the only three products that it produces - X, Y, Z:
x
y
z
Units of production
500
24,900
4,400
Direct Labor Hours Per unit
7
3
Direct Labor wage rate
$16.00
$23.00
$27.00
Required - How much overhead was allocated to Product X [round the overhead rate to two decimal places]?
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