SCS Co. uses activity-based costing in their manufacturing process. The company produces two products, ABC...

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Accounting

SCS Co. uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. SCS has provided their costing department the following information from this years budget relating to the production of these two products:
ABC XYZ
Units to be produced 4,0006,000
Machine-hours expected 80160
Direct labor-hours expected 160240
Materials handling (number of moves)4856
Machine setups (number of setups)1612
The following costs are expected to be incurred throughout the year and are related to the cost drivers being measured:
Expected Total Costs
Direct Labor Wages $40,000
Materials handling $3,200
Labor-related overhead $33,600
Machine setups $5,600
What is the expected overhead allocated to product XYZ?
NOTE: Round all per-unit costs to the nearest cent.
Select one:
a. None of the amounts listed.
b. $18,116.96
c. $22,560.00
d. $21,883.12
e. $24,283.12

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