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Business, 24.03.2020 03:43 khynia11

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 XYProduction 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.

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