Question

1.

Lazer Vision Corporation has two product lines: LED televisions and LCD televisions. The company has budgeted the following production and overhead costs for the upcoming year:

		LED TV’s	LCD TV’s
Units Produced		1,500	2,250
Direct labor hours per Unit		20	30
Material Moves per Product Line		15	25
Budgeted Materials Handling Cost	$75,000
Total Machine Hours		10,000	16,000
Machine Maintenance Costs	$180,000

Refer to Lazer Vision Corporation. If the company uses number of units produced to allocate factory overhead, the materials handing cost allocated to LED TVs would be

Select one:

a. $23,077

b. $28,125

c. $30,000

d. $45,000

2.

Lazer Vision Corporation has two product lines: LED televisions and LCD televisions. The company has budgeted the following production and overhead costs for the upcoming year:

		LED TV’s	LCD TV’s
Units Produced		1,500	2,250
Direct labor hours per Unit		20	30
Material Moves per Product Line		15	25
Budgeted Materials Handling Cost	$75,000
Total Machine Hours		10,000	16,000
Machine Maintenance Costs	$180,000

Refer to Lazer Vision Corporation. If the company uses an activity-based costing (ABC) system to allocate factory overhead, the materials handing cost allocated to LED TVs would be

Select one:

a. $28,125

b. $30,000

c. $45,000

d. $23,077

Answer 1