Question

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 is $76,800 P Required: Reference 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 handing 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 handing activity is the number of material moves 4. Under activity-based costing (ABC), the material handing costs allocated to one mirror would be what amount? The cost driver for the material handing activity is the number of material moves (For all requirements, Do not round your intermediate calculations.) 1. Material handling cost per les 2. Material handing cost per minor 3. Material handing costar 4. Material handing cost per m or

Answer 1

D2 X for total cost 2 AB E F G H K L M N O total cost activity in direct labor hours overhead allocation rate per labor hour costs allocated units produced cost allocated to each unit | lenses $ 76,800.00 6,600 mirrors 6,600 total 13,200 lenses $ 38,400.00 mirrors $ 38,400.00 lenses mirrors 30 1 30 lenses $ 1,280.00 mirrors $ 1,280.00 material handling costs $5.8182 total cost activity in direct material moves I moves overhead allocation rate per labor hour rate per labor hour costs allocated cost lenses 24 mirrors 14 total 38 units produced lenses mirrors 30 30 cost allocated to each unit lenses mirrors $ 1,616.84 $943.16 material handling costs $ 76,800.00 $2,021.0526 $48,505.26 $ 28,294.74 1| material handling cost per lens 2 material handling cost per mirror 3 material handling cost per lens |4| material handling cost per mirror $ 1,280.00 $ 1,280.00 $ 1,616.84 $943.16

for formulas and calculations, refer to the image below -

I X fac total cost D ДА В E F G H 1 M N O total cost | activity in direct labor hours overhead allocation rate per labor hour costs allocated units produced cost allocated to each unit total =E4+F4 lenses mirrors =30*220 |=30*220 lenses mirrors lenses mirrors =E4*H4 =F4*H4 30 30 material handling costs | mirrors =J4/L4 76800 lenses =14/K4 =D4/64 total cost activity in direct material moves overhead allocation rate per labor hour costs allocated units produced cost allocated to each unit mirrors lenses 24 total =E8+F8 lenses mirrors lenses mirrors lenses =E8*H8 =F8*H8 30 30 =18/K8 mirrors =J8/L8 material handling costs 76800 14 =58/G8 1 material handling cost per lens =M4 2 material handling cost per mirror =N4 3 material handling cost per lens =M8 4 material handling cost per mirror =N8

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