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Crizal Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now preparing its annual profit plan. As part of its
Crizal 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. Units produced Material moves per product line Direct-labor hours per unit Lenses 22 352 250 Mirrors 22 132 250 The total budgeted material handling cost is $72,160. 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 activity-based costing (ABC), the material handling costs allocated to one lens would be what amount? 2. Under activity-based costing (ABC), the material handling costs allocated to one lens would be what amount? 3. Under the traditional costing system that allocates overhead on the basis of direct-labor hours, the material handling costs allocated to one mirror would be: 4. Under activity-based costing (ABC), the material handling costs allocated to one mirror would be
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