The next two questions are based on the following informatio…

The next two questions are based on the following information: Zela Company is preparing its annual financial 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 provided below.     Overhead to be allocated represents material handling costs of $50,000. Q1: Under a traditional costing system that allocates overhead on the basis of direct labor hours, the materials handling costs allocated to one unit of Wall mirrors would be:

The next two questions are based on the following informatio…

The next two questions are based on the following information: Zela Company is preparing its annual financial 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 provided below:     Overhead to be allocated represents material handling costs of $50,000. Q2: Under an activity-based costing (ABC) system that uses material moves as the cost driver, the materials handling costs allocated to one unit of Wall mirrors would be: