The controller of Ferrence Company estimates the amount of materials handling ov

Question

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

If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the Wall Mirrors is closest to: (Round your intermediate calculations to 4 decimal places.)

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

Explanation / Answer

Ans. (Amount in USD) Particulars Wall Mirrors Specialty Windows Total Total expected units produced                   14,500                  1,140         15,640 Total expected material moves                     1,450                  1,040           2,490 Expected direct labor-hours per unit                         13                       13 Expected Nos. of Hrs. 188,500 14,820       203,320 Expected Total Material Handling Cost 16,256.3171 1,278.0829 17,534.40 Note: Expected Material Handling cost in allocated on the basis of Expected Nos. of Hrs.

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