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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 Production setups Number of setups $ 82,000 8. Material handling Number of parts 48,000 56 X24 XY 12 24 Packaging costs Number of units 130,000 80,000 50,000 $ 260,000 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)? Select one: a. $1.83. Ob. none of the given answer. Oc. $2.33. Od. $1.79. Oe. $2.27.
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