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?

a)$212,400.

b)$190,800.

c)$264,600.

d)$286,200.

How does knowing about supply and demand

The winston company estimates that the factory overhead for the following year will be $1,250,000. the company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. the total machine hours for the year were 54,300. the actual factory overhead for the year were $1,375,000. determine the over- or underapplied amount for the year.

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)