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Angie's Inc. manufactures and distributes 2 products, A and B. Overhead costs are currently allocated using the number of units produced as the allocation
Angie's Inc. manufactures and distributes 2 products, A and B. 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 Production setups/Number of setups Amount $204,000 A B 36 32 Material handling/Number of parts Packaging costs/Number of units 496,000 44 BO 700.000 80,000 60,000 $1,400,000 What is the total overhead allocated to Product A using the current method? OA $800,000 8. $684,000 C.$716,000 OD. $600,000
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