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 Material handling Packaging costs Cost Driver Number of setups Number of parts Number of units Amount $ 73,000 M XY 12 18 56 93,000 24 62,000 53,000 230,500 $ 356,500 What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)? Note: Do not round intermediate calculations; round your final answer to the nearest cent.
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 Material handling Packaging costs Cost Driver Number of setups Number of parts Number of units Amount $ 73,000 M XY 12 18 56 93,000 24 62,000 53,000 230,500 $ 356,500 What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)? Note: Do not round intermediate calculations; round your final answer to the nearest cent.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 24E: Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs....
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