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OleMash [197]
2 years ago
5

Merone Company allocates materials handling cost to the company's two products using the below data:Modular Homes Prefab Barns T

otal expected units produced 5,400 8,400Total expected material moves 540 140 Expected direct labor-hours per unit 740 240The total materials handling cost for the year is expected to be $210,420.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:
Business
1 answer:
Amiraneli [1.4K]2 years ago
6 0

Answer:

$167,098

Explanation:

The computation of the total materials handling cost allocated to the modular homes is shown below:

= Total material handling cost × expected modular homes ÷ total expected material moves

= $210,420 × 540 ÷ (540 + 140)

= $167,098

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