Under activity-based costing (ABC), the material-handling activity costs allocated to one lens would be what amount?

Under activity-based costing (ABC), the material-handling activity costs allocated to one lens would be what amount? The cost driver for the material-handling activity is the number of material moves.

Material-handling cost per lens:

[($50,000 ÷ (5 + 15)*)] x 5** = $500

25

Where: * Material moves’ total number

** The lens product line material moves’ number

Therefore, the material-handling cost per lens is $500

4. Answer the same question as in requirement (3), but for mirrors

Material-handling cost per mirror:

[($50,000 ÷ (5 + 15)*)] x 15** = $1,500

25

Where: * Material moves’ total number

** The mirror product line material moves’ number

Exercise 5-27 Page 201

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