Question
Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base.
Allure 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:
| Activity | Cost Driver | Amount | M | XY | ||||
| Production setups | Number of setups | $ | 79,000 | 16 | 24 | |||
| Material handling | Number of parts | 58,000 | 64 | 16 | ||||
| Packaging costs | Number of units | 300,500 | 105,000 | 70,000 | ||||
| $ | 437,500 | |||||||
What is the total overhead per unit allocated to Product M using activity-based costing (ABC)?
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Auditing Local Union Financial Records A Guide For Local Union Trustees
Authors: John Lund
1st Edition
0875461948, 978-0875461946
