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 Mirrors Units produced 22 22 Material moves per product line 16 6 Direct labor hours per unit 200 200 The total budgeted material handling cost is $82,720 Required Under a costing system that allocates overhead on the basis of direct labor hours, the material handling costs allocated to one lens would be what amount Under a costing system that allocates overhead on the basis of direct labor hours, the material handling costs allocated to one mirror would be what amount Under activity based costing (ABC), the material handling costs allocated to one lens would be what amount The cost driver for the material handling activity is the number of material moves Under activity based costing (ABC), the material handling costs allocated to one mirror would be what amount The cost driver for the material handling activity is the number of material moves

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Posted on Jul 28, 2024

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	Mirrors
Units produced	22		22
Material moves per product line	16		6
Direct-labor hours per unit	200		200

The total budgeted material-handling cost is $82,720.

Required:

Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one lens would be what amount?
Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one mirror would be what amount?
Under activity-based costing (ABC), the material-handling costs allocated to one lens would be what amount? The cost driver for the material-handling activity is the number of material moves.
Under activity-based costing (ABC), the material-handling costs allocated to one mirror would be what amount? The cost driver for the material-handling activity is the number of material moves.