Blue Shield. analysis and activity-based costing. How could the administration at Immunity Medical 5-17. 5-24. What is a customer profitability profile? Center's Primary Care Unit use the information devel- -25. Describe the u oped by the TDABC project team? use of practical capacity in a TDABC system. Exercises All applicable Exercises are available in Connect.Connect Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The Exercise 5-26 company is now preparing its annual profit plan. As part of its analysis of the profitability of individual Volume-Based Cost Drive products, the controller estimates the amount of overhead that should be allocated to the individual prod- versus ABC uct lines from the following information. LO 5-1, 5-2,5-4) Lenses Mirrors Units produced.. Material moves per product line .. 25 25 15 Direct-labor hours per unit 200 200 The total budgeted material-handling cost is $50,000. 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. Answer the same question as in requirement (1), but for mirrors. 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. Answer the same question as in requirement (3), but for mirrors. CMA, adapted)