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Question 17 Not yet answered Marked out of 1.2 Flag question XYZ Company manufactures and distributes two products, M and XY. Overhead costs are
Question 17 Not yet answered Marked out of 1.2 Flag question 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: Activity Cost Driver Amount M XY Production Number of $ 82,000 8 12 setups setups Material Number of 48,000 56. 24 handling parts Packaging Number of costs 130,000 80,000 50,000 units $260,000 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)? Select one: a. $2.27. b. $2.33.
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