Allure Company Manufactures and Distributes Two Products,M and XY What Is the Total Overhead Per Unit Allocated to Product

question 93

Multiple Choice

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:
$\begin{array}{|l|l|r|r|r|}\hline \text { Acturity } & \text { Cost Driser } & \text { Amount } & \text { M } & \times Y \\\text { Production } & \text { Number of } & \$ 82,000 & 8 & 12 \\\text { setups } & \text { setups } & & & \\\hline \text { Material } & \text { Number of } & 48,000 & 56 & 24 \\\text { handling } & \text { parts } & & & \\\text { Packaging } & \text { Number of } & 130,000 & 80,000 & 50,000 \\\text { costs } & \text { units } & & & \\\hline&&\underline{\$260,000}&&\\\hline\end{array}$
What is the total overhead per unit allocated to Product XY using activity-based costing (ABC) ?

• A) $2.60.
• B) $2.27.
• C) $2.00.
• D) $1.83.

---

Definitions:

Tertiary Circular Reactions

The stage in Piaget's sensorimotor phase (usually around 12-18 months of age) where infants start experimenting with new behaviors through trial and error.

Coordination

The ability to use different parts of the body smoothly and efficiently together, often important for physical activities and sports.

Intentionality

The quality of being deliberate or purposeful in actions, thoughts, or communications.

Coordination

The ability to use different parts of the body together smoothly and efficiently.