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 overhead that should be allocated to the individual product lines from the following information.

The total budgeted material-handling cost is $50,000.

Required:

1. Under the traditional costing system that allocates overhead on the basis of direct-labor hours, the material handling costs allocated to one lens would be: $2,000 per unit$2,500 per unit$1,640 per unit$1,000 per unit

2. Under activity-based costing (ABC), the material-handling costs allocated to one lens would be: $500 per unit$1,500 per unit$125 per unit$100 per unit

3. Under the traditional costing system that allocates overhead on the basis of direct-labor hours, the material handling costs allocated to one mirror would be: $1,000 per unit$2,000 per unit$1,640 per unit$2,500 per unit

4. . Under activity-based costing (ABC), the material-handling costs allocated to one mirror would be: $100 per unit$375 per unit$500 per unit$1,500 per unit

- units produced for

lenses 25

mirrors 25

- materials moves per product line

lenses 125

mirrors 375

- Direct labor hours per unit

lenses 200

mirrors 200