Exercise 5-26 Volume-Based Cost Driver versus ABC (LO 5-1, 5-2, 5-4) Tioga Company...
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Exercise 5-26 Volume-Based Cost Driver versus ABC (LO 5-1, 5-2, 5-4) 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 materlal-handling cost is $50,000. 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 materlal-handling costs allocated to one mirror would be what amount? 3. Under actlvity-based costing (ABC), the materlal-handling costs allocated to one lens would be what amount? The cost driver for the materlal-handlling activity is the number of materlal moves. 4. Under actlvity-based costing (ABC), the materlal-handling costs allocated to one mirror would be what amount? The cost driver for the materlal-handling activity is the number of material moves
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