Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using...
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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 XY 12 28 36 72,000 $ 72,000 50,000 54 108,000 355,000 $ 477,000 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)? 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 XY 12 28 36 72,000 $ 72,000 50,000 54 108,000 355,000 $ 477,000 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)?
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