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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 $ 77,000 8 12
Material handling Number of parts 56,000 56 14
Packaging costs Number of units 203,000 84,000 56,000
$ 336,000

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

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