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 Production setups AX 14 Cost Driver Amount Number of setups 9. Material handling Number of parts 48,000 333,750 111, 000 74,000 24 Packaging costs Number of units $471,750 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)? Multiple Choice

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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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
AX
14
Cost Driver
Amount
Number of setups
Number of parts
Production setups
000 06 $
000
111,000
Material handling
24
Packaging costs
Number of units
333,750
000
$471,750
What is the total overhead per unit allocated to Product M using activity-based costing (ABC)?
Multiple Choice
$1.86.
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Transcribed Image Text:+ I/ MN * 00 SI 回2 ters 8-10 Saved Help Save & Exit 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 AX 14 Cost Driver Amount Number of setups Number of parts Production setups 000 06 $ 000 111,000 Material handling 24 Packaging costs Number of units 333,750 000 $471,750 What is the total overhead per unit allocated to Product M using activity-based costing (ABC)? Multiple Choice $1.86. Mc Graw < Prev 16 of 25 < XƏN 10:21 F (罗 4/15/20 Type here to search PrtSc Delete 1 F10 F11 F12 Ins F8 F5 -D +D 反 F4 & %23 5. 6 3. 4. A G K. H. Alt
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