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	$	73,000		12		18
Material handling	Number of parts		49,000		68		17
Packaging costs	Number of units		246,000		96,000		64,000
		$	368,000

What is the total overhead allocated to Product M using the current system?

Multiple Choice

A)$152,000.

B)$246,000.

C)$216,000.

D)$220,800.

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	$	69,000		6		14
Material handling	Number of parts		52,000		60		15
Packaging costs	Number of units		215,000		112,000		48,000
		$	336,000

What is the total overhead per unit allocated to Product M using activity-based costing (ABC)?

Multiple Choice

A)$2.52.

B)$2.57.

C)$2.10.

D)$1.90.

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	$	90,000		6		14
Material handling	Number of parts		48,000		56		24
Packaging costs	Number of units		333,750		111,000		74,000
		$	471,750

What is the total overhead allocated to Product XY using the current system?

Multiple Choice

A)$210,900.

B)$188,700.

C)$260,850.

D)$283,050.

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	$	90,000		6		14
Material handling	Number of parts		48,000		56		24
Packaging costs	Number of units		333,750		111,000		74,000
		$	471,750

What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)?

Multiple Choice

A)$1.86.

B)$2.85.

C)$2.55.

D)$2.35.