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Allure company manufactures and distributes two products M and XY. Overhead cost are currently allocated using the number of units produced as the allocation base.

Allure company manufactures and distributes two products M and XY. Overhead cost are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based (ABC) system. She has collected the following information.

Activity Cost Driver Amount M XY

Production Setup No. of setups $90,000 6 14

Material & handling No. of parts $48,000 56 24

Packaging cost No. of units 333,750 111,000 74,000

What is the total overhead allocated to product M?

Multiple coice,

$333.750

$260,850

$210.900

$283.050

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