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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: Production setups Material handling Packaging costs Number of setups Number of parts Number of units 69,000 52,000 14 15 215,000 112,000 48,000 6 60 $336,000 What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)? O $2.57 $2.52. $1.90. O $2.10
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