Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the num
Posted: Mon May 30, 2022 6:15 am
Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: M XY Amount $ 79,000 3 7 Activity Production setups Material handling Packaging costs Cost Driver Number of setups Number of parts Number of units 64 16 43,000 193,000 105,000 44,000 $315,000 What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)? Multiple Choice A $277 1000 $275 $185
Allure