Zeta Company Is Preparing Its Annual Profit Plan Budgeted Material-Handling Costs Are $50,000

question 81

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. $\begin{array}{lcc} & \text { Wall Mirrors } & \begin{array}{c}\text { Specialty } \\\text { Windows }\end{array} \\\text { Total units produced } & 25 & 25 \\\text { Total number of material moves } & 5 & 15 \\\text { Direct labor hours per unit } & 200 & 200\end{array}$ Budgeted material-handling costs are $50,000.
The material-handling cost per wall mirror under ABC is:

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

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