Question

Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes.

 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.


LensesMirrors
 Units produced2222
 Material moves per product line166
 Direct-labor hours per unit250250

 The total budgeted material-handling cost is $72,160.


 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.)

image.png



9 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

Direct labor hours for Lenses = 22 * 250 = 5,500

Direct labor hours for Mirrors = 22 * 250 = 5,500

1. Material-handling costs allocated to one lens = [$72,160 * 5,500 / (5,500 + 5,500)] / 22

= $1,640 per unit

2. Material-handling costs allocated to one Mirrors = [$72,160 * 5,500 / (5,500 + 5,500)] / 22

= $1,640 per unit

Direct material moves for Lenses = 22 * 16 = 352

Direct material moves for Mirrors = 22 * 6 = 132

3. Material-handling costs allocated to one lens = [$72,160 * 352 / (352 + 132)] / 22

= $2,385 per unit

4. Material-handling costs allocated to one Mirrors = [$72,160 * 132 / (352 + 132)] / 22

= $895 per unit

Add a comment
Know the answer?
Add Answer to:
Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes.
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now...

    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 Material moves per product line Direct-labor hours per unit 22 190 12 190 The total budgeted material handling cost is $61,640. Required: 1. Under...

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

    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 26 26 Units produced Material moves per product line Direct-labor hours per unit 21 160 160 The total budgeted material handling cost is $94,640. Required: 1....

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

    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, Units produced Material moves per product line Direet-labor hours per unit 17 210 The total budgeted material handling cost is $94,080. Required: 1. Under a costing system that...

  • Chapter 05 Homework Help Save & Exit Submit Check my work Tioga Company manufactures sophisticated lenses...

    Chapter 05 Homework Help Save & Exit Submit Check my work 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 Units produced Material moves per product line Direct-labor hors per wit The total budgeted material handing cost...

  • Mission Company is preparing its annual profit plan. As part of its analysis of the profitability...

    Mission 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 provided below. (CMA based) Wall Mirrors Specialty Windows Units Produced 150 25 Material moves per product line 5 34 Direct labor hours per product line 750 850 Budgeted material handling costs: $336,000 Under a traditional costing system that allocates overhead on the...

  • Mission Company is preparing its annual profit plan. As part of its analysis of the profitability...

    Mission 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 provided below. (CMA based) Wall Mirrors Specialty Windows Units Produced 240 20 Material moves per product line 5 65 Direct labor hours per product line 1,200 1,300 Budgeted material handling costs: $315,000 Under an activity-based costing (ABC) system, the materials handling costs...

  • 11. Zela Company is preparing its annual profit plan. As part of its analysis of the...

    11. Zela 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 provided below. (CMA based) Units produced Material moves per product line Direct labor hours per product line Wall Mirrors 40 5 200 Specialty Windows 20 15 300 Budgeted material handling costs: $50,000 Under an activity-based costing (ABC) system, the materials handling...

  • Fact Pattern: Zeta Company is preparing its annual profit plan. As part of its analysis of...

    Fact Pattern: 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 Specialty Mirrors 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 Under activity-based costing (ABC), Zeta’s materials handling costs...

  • E18-5 Perdon Corporation manufactures safes-large mobile safes, and large walk-in sta- tionary bank safes. As part...

    E18-5 Perdon Corporation manufactures safes-large mobile safes, and large walk-in sta- tionary bank safes. As part of its annual budgeting process, Perdon is analyzing the profit ability of its two products. Part of this analysis involves estimating the amount of overhead to be allocated to each product line. The following information relates to overhead. Mobile Walk-In Safes Safes Units planned for production 200 50 Material moves per product line 300 200 Purchase orders per product line 450 350 Direct labor...

  • Perdon Corporation manufactures safes—large mobile safes, and large walk-in stationary bank safes. As part of its...

    Perdon Corporation manufactures safes—large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Perdon is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be allocated to each product line. The information shown below relates to overhead. Mobile Safes Walk-in Safes Units planned for production 200 50 Material moves per product line 300 200 Purchase orders per product line 450 350 Direct labor hours per...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT