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XYZ Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation
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 setups Material handling Number of setups $ 82,000 8 12 Number of parts Packaging costs Number of units 48,000 130.000 56 24 80,000 50,000 $ 260.000 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)? Select one O & none of the given answer. O b. $1.79. O c $1.83. O d. $2.27. a $2.33 Company XYZ has total prime cost of $9,000 and total conversion cost of $16.000. Assume that manufacturing overhead cost is four times the direct labor cost, how much is the direct materials cost? Select on & 9,000 O b. 5.400 O c 0,600 Od. None of the given answers O 14.400
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