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 below:

	Wall Mirrors	Specialty 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

1) Under a costing system that allocates overhead on the basis of direct labor hours, Zeta Company’s materials handling costs allocated to one unit of wall mirrors would be:

2) Under activity-based costing (ABC), Zeta’s materials handling costs allocated to one unit of wall mirrors would be:

Answer rating: 100% (QA)

1 This is an allocation of all of the materials handling costs to the wall mirrorsTo answer this cor... View the full answer