Mission Company is 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 information provided below. (CMA based)

	Wall Mirrors	Specialty Windows
Units Produced	210	25
Material moves per product line	5	46
Direct labor hours per product line	1,050	1,150
Budgeted material handling costs: $594,000

Under a traditional costing system that allocates overhead on the basis of direct labor hours, the materials handling costs allocated to one unit of Wall Mirrors would be:

Multiple Choice

$22,000.

$1,000.

$5,400.

$1,350.

Mission Company is 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 information provided below. (CMA based)

	Wall Mirrors	Specialty Windows
Units Produced	240	20
Material moves per product line	5	65
Direct labor hours per product line	1,200	1,300
Budgeted material handling costs: $315,000

Under an activity-based costing (ABC) system, the materials handling costs allocated to one unit of Wall Mirrors would be:

Multiple Choice

$249.98.

$187.50.

$93.75.

$300.01.

Mission Company is 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 information provided below. (CMA based)

	Wall Mirrors	Specialty Windows
Units Produced	120	20
Material moves per product line	5	35
Direct labor hours per product line	600	700
Budgeted material handling costs: $132,000

Under an activity-based costing (ABC) system, the materials handling costs allocated to one unit of Specialty Windows would be:

Multiple Choice

$2,887.50.

$5,775.00.

$4,620.00.

$971.75.