Use the following to answer questions 1-2 Swimm Company allocates materials hand

Question

Use the following to answer questions 1-2 Swimm Company allocates materials handling cost to the company's two products using the below data Modular Homes Prefab Barns Total e Total e Expected direct labor-hours per unit cted units pro cted material moves 3,000 400 700 4.000 100 200 duced The total materials handling cost for the year is expected to be $72,065. 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 prefab barns? (Round off your answer to the nearest whole dollar.) A) $16,014 B) $19,880 C) $36,890

Explanation / Answer

1.total material handling cost/total DL *Prefab barns DL hours=72,065/900*200=$16,014

2.total material handling cost/total moves*modular homes moves=72,065/500*400=$57,652

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