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 the individual product lines from the information given below.
Budgeted material-handling costs are $50,000.
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.

Question

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 the individual product lines from the information given below. 
Budgeted material-handling costs are $50,000.
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.

Quizplus · Accepted Answer

The Answer of 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 the individual product lines from the information given below. 
Budgeted material-handling costs are $50,000.
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.

Zeta Company Is Preparing Its Annual Profit Plan