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Zeta Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of
Zeta 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 given in the next column: | |||
Wall Mirrors | Specialty Windows | ||
Units produced | 50 | 15 | |
Material moves per product line | 3 | 17 | |
Direct labor hours per unit | 6 | 44 | |
Budgeted materials handling costs | $25,000 | ||
Under a costing system that allocates overhead on the basis of direct labor hours, Zeta's materials handling costs allocated to one unit ofwall mirrors would be | |||
Answer:== | |||
Under activity-based costing (ABC) using material moves per product line, Zeta's materials handling costs allocated to one unit of wall mirrors would be | |||
Answer==
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