Solution-What is the total overhead allocated to product xy

What is the total overhead allocated to product xy

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Reference no: EM132655846

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         $ 76,000             9                21
Material handling Number of parts           57,000                56             24
Packaging costs        Number of units           234,500               90,000   60,000
                                                               $367,500

Problem 1: What is the total overhead allocated to Product XY using the current system?

Reference no: EM132655846

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What is the total overhead allocated to product xy

Reference no: EM132655846

Reference no: EM132655846

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