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Zela Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of
Zela Company is 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 information provided below. |
Wall Mirrors | Speciality Windows | |
Units produced | 230 | 210 |
Material moves per product line | 24 | 34 |
Direct labor hours per product line | 5,520 | 7,140 |
Budgeted material handling costs: $1,266,000 |
Under a traditional costing system that allocates overhead on the basis of direct labor hours, the materials handling costs allocated to one unit of wall mirrors would be: |
$2,400.
$5,800.
$132,480.
$43,655.
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