Zeta Company Is Preparing Its Annual Profit Plan $\text { Budgeted material-handling costs are } \$ 50,000 \text {. }$

question 41

Multiple Choice

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 manufacturing overhead that should be assigned to each of the two product lines from the information given below. $\begin{array}{lcc} & \text { Wall Mirrors } & \begin{array}{c}\text { Specialty } \\\text { Windows }\end{array} \\\text { Total units produced } & 25 & 25 \\\text { Total number of material moves } & 5 & 15 \\\text { Direct labor hours per unit } & 200 & 200\end{array}$
$\text { Budgeted material-handling costs are } \$ 50,000 \text {. }$ Under a costing system that allocates manufacturing overhead on the basis of direct labor hours, the material-handling cost per wall mirror is:

• A)$0.
• B)$500.
• C)$1,000.
• D)$2,000.
• E)$5,000.

Grasp the basic tenets of social psychology and its approach to understanding human behavior.

Comprehend the self-correcting nature of science and its implications for research.

Understand the concept and calculation of present value and its application in evaluating future cash flows.

Comprehend the methods of calculating the annual rate of return and its significance in investment decisions.

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