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Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now preparing its annual profit plan. As part of its analysis of the profitability of...

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Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now 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 following information.

Lenses Mirrors
Units produced 25 25
Material moves per product line 8 18
Direct-labor hours per unit 250 250

The total budgeted material-handling cost is $85,500.
Required:
1.

Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one lens would be what amount? (Omit the "$" sign in your response.)


Material-handling cost per lens $

2.

Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one mirror would be what amount? (Omit the "$" sign in your response.)


Material-handling cost per mirror $

3.

Under activity-based costing (ABC), the material-handling costs allocated to one lens would be what amount? The cost driver for the material-handling activity is the number of material moves. (Do not round your intermediate calculations. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)


Material-handling cost per lens $

4.

Under activity-based costing (ABC), the material-handling costs allocated to one mirror would be what amount? The cost driver for the material-handling activity is the number of material moves. (Do not round your intermediate calculations. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)


Material-handling cost per mirror $
Answered Same Day Dec 22, 2021

Solution

David answered on Dec 22 2021
123 Votes
Tioga Company manufactures sophisticated lenses and mi
ors used in large optical telescopes. The
company is now 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 following information.

Lenses Mi
ors
Units
produced
25

25
Material
moves
per
product
line
8

18

Direct-
labor
hours
per unit
250

250
The total budgeted material-handling cost is $85,500.
Required:
1. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-
handling costs allocated to one lens would be what amount? (Omit the "$" sign in your response.)
Material-handling cost per lens...
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