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MrMuchimi
3 years ago
7

Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of u

nits 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 $ 72,000 12 28
Material handling Number of parts 50,000 54 36
Packaging costs Number of units 355,000 108,000 72,000
$ 477,000
What is the total overhead allocated to Product XY using the current system?

A)$212,400.

B)$190,800.

C)$264,600.

D)$286,200.
Business
1 answer:
Elan Coil [88]3 years ago
4 0

Answer:

Option (B) is correct.

Explanation:

Number of units produced in total  = M + XY

                                                         = 108,000 + 72,000

                                                         = 180,000

Total Overhead Cost = $72,000 + $50,000 + $355,000

                                   = $477,000

The total overhead allocated to Product XY using the current system:

= (Total Overhead Cost ÷ number of units produced in total) × Number of Units of Product XY

= ($477,000 ÷ 180,000) × 72,000

= $190,800

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4 years ago
Reggie who is 55, had adjusted gross income of $32,000 in 2020. During the year, he paid for the following medical expenses:
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6 0
3 years ago
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Answer:

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Unlike what happens in production processes, stopping a pump from a commercial building almost never results in a loss of production. On the contrary, the interruption is usually translated into a loss of comfort. However, the immeasurable costs associated with downtime may be even higher if, for example, hotel guests run out of water. Therefore, it is always advisable to install a replacement pump to prevent comfort losses caused by an unexpected failure in the pumping system. The communication capabilities of electronically controlled pumps E help minimize downtime because replacement and repair work can be completed more quickly in the event of a breakdown. A backup pump is used to prevent downtime and consequent loss of comfort in the event of a breakdown.

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Answer:

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