XYZ 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 chan to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount XY Production setups Number of setups 24 82.000 8 12 Material handling Number of parts 48,000 56 24 Packaging costs Number of units 130,000 80,000 50,000 $ 260.000 What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)? Select one: O a. $2.27. Ob. none of the given answer. Oc $2.33. 2d$1,83. O e$1.79.
XYZ 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 chan to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount XY Production setups Number of setups 24 82.000 8 12 Material handling Number of parts 48,000 56 24 Packaging costs Number of units 130,000 80,000 50,000 $ 260.000 What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)? Select one: O a. $2.27. Ob. none of the given answer. Oc $2.33. 2d$1,83. O e$1.79.
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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