Merone Company allocates materials handling cost to the company's two products using the

7 months ago
18

Merone Company allocates materials handling cost to the company's two products using the below data:

Modular Homes Prefab Barns
Total expected units produced 5,500 8,500
Total expected material moves 550 150
Expected direct labor-hours per unit 750 250
The total materials handling cost for the year is expected to be $250,000.

If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the prefab barns is closest to:

Note: Round your intermediate calculations to 2 decimal places.

#CostAccounting
#CostAllocation
#Accounting

Loading comments...