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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:

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A company has determined the following standards for production of its dining tables:

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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 overhead that should be allocated to the individual product lines from the information given in the next column: 50 Units produced Material moves per product line Direct labor hours per unit Budgeted materials handling costs Wall Mirrors Specialty Windows 125 2 15 5 50 $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 of wall 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: A company has determined the following standards for production of its dining tables: Square feet of oak per table: Price per square foot of oak: Number of screws per table: Price per screw: 10 $2.25 16 $0.02 The company expects a 25% increase in the cost of oak and a 5% decrease in the cost of screws. What is the new standard cost per table

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