6 Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the following information. 6.25 points Lenses 26 21 220 Units produced Material moves per product line Direct-labor hours per unit Mirrors 26 11 220 Skipped The total budgeted material handling cost is $68,640. eBook References Required: 1. Under a costing system that allocates overhead on the basis of direct-labor hours, the material handling costs allocated to one lens would be what amount? 2. Under a costing system that allocates overhead on the basis of direct-labor hours, the material handling costs allocated to one mirror would be what amount? 3. Under activity-based costing (ABC), the material handling costs allocated to one lens would be what amount? The cost driver for the material handling activity is the number of material moves. 4. Under activity-based costing (ABC), the material handling costs allocated to one mirror would be what amount? The cost driver for the material handling activity is the number of material moves. (For all requirements, do not round your intermediate calculations and round your final answers to the nearest whole dollar.) 1. Material handling cost per lens 2. Material handling cost per mirror 3. Material handling cost per lens 4. Material handling cost per mirror 7 Urban Elite Cosmetics has used a traditional cost accounting system to apply quality control costs uniformly to all products at a rate of 19 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $100,000. In an attempt to more equitably distribute quality control costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup. 6.25 points Skipped Activity Cost Pool Incoming material inspection In-process inspection Product certification Cost Driver Type of material Number of units Per order Pool Rates $ 25.00 per type 0.27 per unit 150.00 per order Quantity of Driver for Satin Sheen 25 types 35,000 units 80 orders eBook References Required: 1. Calculate the monthly quality control cost to be assigned to the Satin Sheen product line under each of the following product- costing systems. a. Traditional system, which assigns overhead on the basis of direct-labor cost. b. Activity-based costing. 2. Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality control costs? By what amount? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under the Traditional product-costing system and the Activity-based product-costing system. Assigned Cost a. Traditional system b. Activity-based costing 7 Urban Elite Cosmetics has used a traditional cost accounting system to apply quality control costs uniformly to all products at a rate of 19 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $100,000. In an attempt to more equitably distribute quality control costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup. 6.25 points Skipped Activity Cost Pool Incoming material inspection In-process inspection Product certification Cost Driver Type of material Number of units Per order Pool Rates $ 25.00 per type 0.27 per unit 150.00 per order Quantity of Driver for Satin Sheen 25 types 35,000 units 80 orders eBook References Required: 1. Calculate the monthly quality control cost to be assigned to the Satin Sheen product line under each of the following product- costing systems. a. Traditional system, which assigns overhead on the basis of direct-labor cost. b. Activity-based costing. 2. Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality control costs? By what amount? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality-control costs? By what amount? Traditional system by