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n920 Question 3 Not yet answered Marked out of 1.2 XYZ Company manufactures and distributes two products, M and XY. Overhead costs are currently
n920 Question 3 Not yet answered Marked out of 1.2 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: question Activity Cost Driver Amount M XY Production setups Number of setups $ 82,000 8 12 Material handling Number of parts 48,000 56 24 Packaging costs Number of units 130.000 80,000 50,000 $ 260,000 What is the total overhead per unit allocated to Product XY using activity- based costing (ABC)? Select one: a. $2.33. b. $1.79. c. $1.83 d $2.27 e none of the given answer
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