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Reema Abdullah Mohammed Salim Aldarmaldi Lenses 25 25 Towell Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now preparing

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Reema Abdullah Mohammed Salim Aldarmaldi Lenses 25 25 Towell 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 coverhead that should be allocated to the individual product lines from the following information Mirrors Units produced Material moves per product line ..125 375 Direct-lahar hours per unit 200 The total budgeted material-handling cost is $50,000 Required: 1. Under the traditional costing system that allocates overhead on the basis of direct-abor hours the material handling costs allocated to one lens would be 200 $2.000 per unit $1.000 per unit 51.640 per unit $2.500 per unit 2. Under activity-based costing (ABC), the material handling costs allocated to one lens would be $125 per unit 5500 per unit $1,500 per unit $100 per unit 3. Under the traditional costing system that 3. Under the traditional costing system that allocates overhead on the basis of direct labor hours, the material handling costs allocated to one mitror would be $1,000 per unit 51 640 per unit $2,500 per unit 52.000 per unit 4. Under activity-based costing (ABC), the material handling costs allocated to one mirror would be $375 per unit $100 per unit $500 per unit $1,500 per unit

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