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 material$-$handling cost is $$75,600.$

Required:

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?

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?

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.

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.$)$