Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated...
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Accounting
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 Production setups Material handling Packaging costs Cost Driver Number of setups Number of parts Number of units Amount $ 80,000 55,000 249,000 $384,000 M 15 54 96,000 XY 35 36 64.000 What is the total overhead allocated to Product M using the current system? $177,600 $249.000 O $206,400 O $230,400
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