What is the total overhead per unit allocated

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Reference no: EM133649342

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 $ 84,000 8 12 Material handling Number of parts 42,000 56 24 Packaging costs Number of units 211,500 90,000 60,000 $ 337,500 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)? Note: Do not round intermediate calculations; round your final answer to the nearest cent. 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 $ 84,000 8 12 Material handling Number of parts 42,000 56 24 Packaging costs Number of units 211,500 90,000 60,000 $ 337,500 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)?

Reference no: EM133649342

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