The controller for a company estimates the amount of materials handling overhead

Question

The controller for a company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data below:

Wall Mirrors
Total expected units produced 2000
Total expected material moves 100
Expected direct labor hours per unit 7

Specialty Windows
Total expected units produced 7000
Total expected material moves 600
Expected direct labor hours per unit 4

The total material handling cost for the year is expected to be $18,257.40

If the materials handling cost is allocated on the basis of direct labor hours, how much of the total materials handling cost would be allocated to the wall mirrors?

Explanation / Answer

1

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