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The controller of Hallowell 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.............. 2,110 7,110
Total expected material moves.............. 210 710
Expected direct labor-hours per unit...... 7 5

The total materials handling cost for the year is expected to be $18,367.4.


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

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M972080

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