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 $ 79,000 16 24 Material handling Number of parts 58,000 64 16 Packaging costs Number of units 300,500 105,000 70,000 $ 437,500 What is the total overhead allocated to Product XY using the current system?

$239,300

Explanation:

As per the data given in the question,

Activity                 Cost driver     Amount   M        XY         Total

Production setup No. of setups $79,000 16        24         40

Material handling No. of parts   $58,000 64       16           80

Packaging cost No. of units       $300,500   $105,000   $70,000 $175,000

                                                  $437,500

Allocation of Product XY :

Production setup $79,000 ÷ 40 × 24                        $47,400

Material handling $58,000 ÷ 80 × 16                         $11,600

Packaging cost $300,500 ÷ $175,000 × $105,000 $180,300

Total overhead                                                          $239,300

We simply added the production setup, material handling and packaging cost

its kinda hard to answer this when we dont have all the information that we need.

the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.