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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 Number of setups Number of parts Number of units Amount $ 84,000 47,000 306,500 $437,500 M 20 45 105,000 XY 30 30 70,000 What is the total overhead allocated to Product M using the current system? What is the total overhead allocated to Product M using the current system? Multiple Choice $245,700. $306,500. $262,500. $191,800
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