Q25.

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 Activity Production setups Material handling Packaging costs Cost Driver Number of setups Number of parts Number of units Amount $ 79,000 58,000 300,500 $437,500 M 16 64 105,000 24 16 70,000 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)? Multiple Choice O $1.96. O $2.46. O O $2.50