Paragraph Styles Use the following to answer questions 1-2 Swimm Company allocat

Question

Paragraph Styles Use the following to answer questions 1-2 Swimm Company allocates materials handling cost to the company's two products using the below data: Modular Homes Prefab Barns Total expected units produced3,000 Total expected material moves Expected direct labor hours per unit 4.000 100 400 700 The total materials handling cost for the year is expected to be $72,065 1. If the materials handling cost is allocated oa the basis.of direct labor-hours, how much of the total materials handling cost would be allocated to the prefab barns? (Round off your answer to the nearest whole dollar.) A) $16,014 B) $19,880 C) $36,890 D) $36,033

Explanation / Answer

1)Total direct labor hours = 700+200= 900

Allocation to Prefab : Total cost * activity used /total activity

                = 72065*200/900 = 16014

correct option is " A"

2)Total moves :400+100=500

Allocation to modular moves = 72065*400/500= 57652

correct option is "B"

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