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: EM132862810

Question - 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

Required - What is the total overhead allocated to Product XY using the current system?

Reference no: EM132862810

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What is the total overhead allocated to Product XY

Reference no: EM132862810

Reference no: EM132862810

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