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Ex 5 - 2 6 ( Algo ) Volume - Based Cost Driver versus ABC ( LO 5 - 1 , 5 - 2 ,
Ex Algo VolumeBased Cost Driver versus ABC LO
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.
tableItemsLenses,MirrorsUnits produced,Material moves per product line,Directlabor hours per unit,
The total budgeted materialhandling cost is $
Required:
Under a costing system that allocates overhead on the basis of directlabor hours, the materialhandling costs allocated to one lens would be what amount?
Under a costing system that allocates overhead on the basis of directlabor hours, the materialhandling costs allocated to one mirror would be what amount?
Under activitybased costing ABC the materialhandling costs allocated to one lens would be what amount? The cost driver for th materialhandling activity is the number of misterial moves.
Under activitybased costing ABC the materialhandling costs allocated to one mirror would be what amount? The cost driver for the materialhandling activity is the number of material moves.
Note: For all requirements, do not round your intermediate calculations and round your final answers to the nearest whole dollar.
table Materialhandling cost per lens Materialhandling cost per mirror Materialhandling cost per lens Materialhandling cost per mirror
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