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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:

Wall Mirrors Specialty Windows
Total expected units produced 7,700 1,450
Total expected material moves 770 1,350
Expected direct labor-hours per unit 14 7

The total materials handling cost for the year is expected to be $17,153.10.

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?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M945911

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