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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: XY Cost Driver Amount Activity 12 8 Production setups Number of setups 77,000 56 14 Number of parts 56,000 Material handling 56,000 Number of units 203,000 84,000 Packaging costs $336,000 What is the total overhead allocated to Product M using the currnt system
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