Answer Happy

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.
The total budgeted material-handling cost is $111,440.

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?
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?
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.
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.

(For all requirements, do not round your intermediate
calculations and round your final answers to the nearest whole
dollar.)