Question 8 Not yet answered Marked out of 1.2 XYZ Company manufactures and distributes two products,...
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Question 8 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: F Flag 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 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. $1.83. Ob. $2.33. c. $2.27. Od. $1.79. e none of the given answer. Question 8 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: F Flag 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 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. $1.83. Ob. $2.33. c. $2.27. Od. $1.79. e none of the given answer.
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