Running Head: SOLUTIONS TO MANAGERIAL ACCOUNTING EXERCISES 1
SOLUTIONS TO MANAGERIAL ACCOUNTING EXERCISES 13
Solutions to Managerial Accounting Exercises
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Chapter 5: Activity-Based Costing and Management:
Exercise 5-26 Page 201
1. 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?
Material-handling cost per lens:
$50,000 x 200 = $1,000
[(25×200) ÷ (25×200)]A
A Direct-labor hour’s total number
Therefore, material-handling cost per lens is $1,000