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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 XYProduction setups Number of setups $ 76,000 9 21Material handling Number of parts 57,000 56 24Packaging 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?
a key customer has asked bob the sales manager if the company is able to supply a new guitar-like instrument the
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