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.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![The total budgeted material-handling cost is $70,840.
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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.)
1. Material-handling cost per lens
2. Material-handling cost per mirror
3. Material-handling cost per lens
4. Material-handling cost per mirror
...
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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
Material moves per product line
Direct-labor hours per unit
23
23
17
160
160
The total budgeted material-handling cost is $70,840.
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.)
Prev
1 of 7
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b5761cd-2b2b-4d13-8b6c-08443e4c97fd%2F3bf89ae6-89e7-4312-8ece-b283f7f21507%2Fnx8qao5_processed.jpeg&w=3840&q=75)
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