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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 acty b costing (ABC) system. She has collected the following information Activity/Cost Driver Production setups/Number of setups Material handling/Number of parts Packaging costs/Number of units Amount 204.000 454,000 6 B 30 44 200.000 80.000 60.000 $1,400.000 What is the total overhead allocated to Product A using the current method OA $600,000 8.1684.000 OC $800.000 OD. $716,000
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