Use the following to answer questions:
The controller of Hendershot 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:
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Wall Mirrors
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Specialty Windows
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Total expected units produced..................
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6,000
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3,000
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Total expected material moves..................
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500
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100
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Expected direct labor-hours per unit.........
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6
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9
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The total materials handling cost for the year is expected to be $6,123.60.
1. 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? (Round off your answer to the nearest whole dollar.)
A) $2,449
B) $4,144
C) $3,499
D) $3,062
2. If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost would be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.)
A) $1,021
B) $3,674
C) $3,062
D) $1,980