20) Allure Company manufactures and distributes two products, M and XY. Overhead costs...
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Accounting
20)
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 XY using the current system?
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