Determine the total materials handling cost allocated


Question:

The controller of Hartis 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

8,000

7,000

Total expected material moves

300

900

Expected direct labor-hours per unit

5

7

The total materials handling cost for the year is expected to be $38,448.00.

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? (Round off your answer to the nearest whole dollar.)

A) $19,696

B) $16,020

C) $19,224

D) $17,280

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Accounting Basics: Determine the total materials handling cost allocated
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