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20) Allure Company manufactures and distributes two products, M and XY. Overhead costs...

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Accounting

20)

Allure 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 Number of setups $82,000 8 12

Material handling Number of parts 48,000 56 24

Packaging costs Number of units 130,000 80,000 50,000

$260,000

What is the total overhead allocated to Product XY using the current system?

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