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	$	79,000		16		24
Material handling	Number of parts		58,000		64		16
Packaging costs	Number of units		300,500		105,000		70,000
		$	437,500

What is the total overhead allocated to Product M using the current system?

Multiple Choice

$258,300.

$300,500.

$262,500.

$179,200.

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	$	87,000		16		24
Material handling	Number of parts		54,000		51		34
Packaging costs	Number of units		192,500		70,000		40,000
		$	333,500

What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)?

Multiple Choice

$2.71.

$3.53.

$3.60.

$3.03.

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	$	72,000		12		28
Material handling	Number of parts		50,000		54		36
Packaging costs	Number of units		355,000		108,000		72,000
		$	477,000

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

Multiple Choice

$264,600.

$190,800.

$212,400.

$286,200.

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)?

Multiple Choice

$2.25.

$2.10.

$2.11.

$2.46.