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et on 5 ered ed out of XYZ Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the
et on 5 ered ed out of XYZ 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: g question Activity Cost Driver Amount M Production setups Number of setups $ 82,000 8 Material handling Number of parts 48,000 56 XY 12 24 Packaging costs Number of units 130,000 50,000 80,000 $ 260,000 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)? Select one: O a. none of the given answer. O b. $1.79. O c. $2.27. O d. $1.83. 4 Oe. $2.33.
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