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.