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16. Aardvark Corporation manufactures and distributes two products, W and YV. Overhead costs are currently allocated using the number of units produced as the allocation
16. Aardvark Corporation manufactures and distributes two products, W and YV. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has suggested changing to an activity-based costing (ABC) system. The controller has collected the following information: Cost Driver Amount YV Activity Production setups W $211,600 Number of 6 15 setups Material handling Packaging costs Number of parts 96,400 72 81 Number of units 154,000 $462,000 84,000 70,000 What is the total overhead allocated to Product W using the current system? A. $252,000 B. $190,000 C.$178,000 D. $154,000
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