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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 M 20 Activity Production setups Material handline Packaging costs Cost Driver Number of setups Number of parts Number of units Amount $ 81,000 47,000 306,500 $437,500 XY 30 30 70,000 105,000 What is the total overhead per unit allocated to Product M using activity based costing (ABC)? Multiple Choice $187 $274, $250 $234
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