Determine the traditional costing based on direct labor


Clemson Co. incurs $700,000 of overhead costs each year in its three main departments, machining ($400,000), inspections ($200,000) and packing ($100,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year.  Information about Clemson%u2019s two products is as follows:
                                             Product X      Product Y
       Machining hours              1,000            3,000
       Inspections                       100              500
       Orders packed                  350               650
       Direct labor hours            1,700             1,800
       
If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year?

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Accounting Basics: Determine the traditional costing based on direct labor
Reference No:- TGS0557828

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