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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 $ 82,000 48,000 130,000 $260,000 M 8 56 80,000 XY 12 24 50,000 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)? Multiple Choice $260. O $2.27 O $2.00 $1.83 O
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