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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
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. Lenses Mirror's Units produced 23 23 Material moves per' product line 15 5 Dir'ectlabor' hours per unit 229 226 The total budgeted materialhandling cost is $84640. Required: 1. Under a costing system that allocates overhead on the basis ofdirectlabor hours, the materialhandling costs allocated to one lens would be what amount? 2. Under a costing system that allocates overhead on the basis of directilabor hours. the materialihandling costs allocated to one mirror would be what amount? 3. Under activitybased costing (ABC), the materialhandling costs allocated to one lens would be what amount? The cost driver for the materialhandling activity is the number of material moves. 4. Under activityibased costing (ABC). the materialihandling costs allocated to one mirror would be what amount? The cost driver for the materialhandling activity is the number of material moves. (For all requirements, do not round your intermediate calculations and round your final answers to the nearest whole dollar.) Materialshandling cost per lens Materialhandling cost per mirror Materialshandling cost per lens \".03.\"? Materialhandling cost per mirror Urban Elite Cosmetics has used a traditional cost accounting system to apply qualitycontrol costs uniformly to all products at a rate of 16 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $113,000. In an attempt to more equitably distribute qualitycontrol costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup. Quantity o'F Driver Activity Cost Pool Cost Driver Pool Rates 'For Satin Sheen Incoming material inspection Type of material E 26.66 per type 23 types Ineprocess inspection Number of: units 9.32 per unit 48,996 units Product certitication Per order 145.66 per order 49 orders Required: 1. Calculate the monthly qualityecontrol cost to be assigned to the Satin Sheen product line under each of the following products costing systems. a. Traditional system. which assigns overhead on the basis of direct-labor cost. b. Activitybased costing. 2. Does the traditional productcosting system overcost or undercost the Satin Sheen product line with respect to quality-control costs? By what amount? Complete this question by entering your answers in the tabs below. Reqwred 1 Required 2 Calculate the monthly duality-control cost to be assigned to the Satin Sheen product line under the Traditional product-costing system and the Activityebased productecosting system. n Tmaamnn \"n.4,"... Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the monthly qualitycontrol cost to be assigned to the Satin Sheen product line under the Traditional productcosting system and the Activitybased productcosting system. Traditional system Activitybased costing Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Does the traditional productcosting system overcost 0r undercost the Satin Sheen product line with respect to qualitycontrol costs? By what amount? -_i
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