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What is the total overhead allocated to product m

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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 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 M using the current system?

$113,600.
$130,000.
$146,400.
$160,000.

Reference no: EM131754799

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