Question

Total expected units produced 6,000 3,000 Total expected material moves 500 100 Expected direct labor-hours per unit 6 9 The total materials handling cost for the year is expected to be $6,123.60. If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the wall mirrors is closest to: (Do not round your intermediate calculations.)

Answer 1

The total materials handling cost allocated to the wall mirrors is closest to: $5,103.

Total materials handling cost:

First step is to calculate the total expected material moves:

Total expected material moves= 500+100

Total expected material moves= 600

Second step is to calculate  the total material handling cost allocated to  wall mirrors:

Total material handling cost allocated to  wall mirrors=$6,123.60× (500 /600)

Total material handling cost allocated to  wall mirrors=$5,103

Inconclusion the total materials handling cost allocated to the wall mirrors is closest to: $5,103.

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