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Question 19 Not yet answered Marked out of 1.2 XYZ Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated
Question 19 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: Flag question Activity Cost Driver Amount M XY Production setups Material handling Number of setups Number of parts $ 82,000 8 12 48,000 56 24 Packaging costs Number of units 130,000 50,000 80,000 $ 260,000 What is the total overhead per unit allocated to Product XY using activity- based costing (ABC)? Select one: a. $2.27. b. $1.83. c. $1.79 d. none of the given answer. e. $2.33.
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