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 $ 90,000 12 18

Material handling Number of parts 45,000 63 27

Packaging costs Number of units 165,000 90,000 60,000

$ 300,000

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

Multiple Choice $180,000. $165,000. $166,500. $133,500.