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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 Activity Cost Driver Amount M XY Production setups Number of setups $ 84,000 20 30 Material handling Number of parts 47,000 45 30 Packaging costs Number of units 306,500 105,000 70,000 $437,500 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)
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