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Precision Lens Company manufactures sophisticated lenses and mirrors used in large optical telescopes The company is now preparing its annual profit plan. As part of
Precision Lens 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 indi- vidual products, the controller estimates the amount of overhead that should be allocated to the individ- ual product lines from the following information. Lenses 30 16 250 Mirrors 30 Units produced... Material moves per product line Direct-labor hours per unit.... 250 The tofa budgeted material-handling cost is $90:000. Required: 1. Under a costing system that allocates overhead on the basis of direct-labor hours, the material- 2. Answer the same question as in requirement (1), but for lenses. 3. Under activity-based costing (ABC), the material-handling costs allocated to one mirror would be 4. Answer the same question as in requirement (3), but for lenses. (CMA, adapted) handling costs allocated to one mirror would be what amount? what amount? The cost driver for the material-handling activity is the number of material moves
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