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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 Production setups Material handling Packaging costs Cost Driver Amount M XY Number of setups $ 83,000 8 12 Number of parts 44,000 68 17 Number of units 178,500 78,000 52,000 $305,500 What is the total overhead allocated to Product XY using the current system
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