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Mkey [24]
3 years ago
6

Merone Company allocates materials handling cost to the company's two products using the below data: Modular Homes Prefab Barns

Total expected units produced 5,800 8,800 Total expected material moves 580 180 Expected direct labor-hours per unit 780 280 The total materials handling cost for the year is expected to be $349,400. If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to: (Round your intermediate calculations to 4 decimal places.)
Business
1 answer:
Olin [163]3 years ago
4 0

Answer:

$266,647

Explanation:

Total Moves = sum of total expected material moves of modular homes and prefab barns  

                    = 580 + 180

                    = 760 Moves

Material handling cost allocated to Modular homes:

= (Expected total materials handling cost ÷ Total moves) ×  total expected material moves of modular homes

= ($349,400 ÷ 760) × 580

= $266,647

If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to: $266,647

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