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 below:

Wall Mirrors Specialty Windows

Units produced 25 25

Material moves per product line 5 15

Direct labor hours per unit 200 200

Budgeted materials handling costs $50,000

A) Under a costing system that allocates overhead on the basis of direct labor hours, Zeta Companys materials handling costs allocated to one unit of wall mirrors would be:

B) Under activity-based costing (ABC), Zetas materials handling costs allocated to one unit of wall mirrors would be: