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

Activity Production setups Material handling Packaging costs Cost Driver Number of setups Number of parts Number of units. Amount $ 76,000 57,000 234,500 $367,500 M 9 56 90,000 XY 21 24 60,000