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What is the total overhead allocated to product m using the

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	$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 allocated to Product M using the current system?

$113,600.

$130,000.

$146,400.

$160,000.

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