Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the
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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: ActivityCost DriverAmountMXY Production setupsNumber of setups$82,000 8 12 Material handlingNumber of parts 48,000 56 24 Packaging costsNumber 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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