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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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