The controller of Hartis Company estimates the amount of materials handling over
ID: 2530318 • Letter: T
Question
The controller of Hartis 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:
The total materials handling cost for the year is expected to be $18,305.10.
If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost should be allocated to the wall mirrors? (Round your intermediate calculation to four decimal places. Round your final answer to nearest whole dollar.)
$45,600
$13,776
$9,244
$9,153
The controller of Hartis 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:
Explanation / Answer
Materials handling cost allocated to the wall mirrors = $13,776
Predetermined overhead rate = $18,305.10 ÷ [ (7,600 units x 6 Hours) + (2,500 Units x 6 Hours)
= $18,305.10 ÷ (45,600 Direct Labor Hours + 15,000 Direct Labor Hours)
= $0.3021 per Direct Labor Hours
Materials handling cost allocated to Wall Mirrors
= 45,600 x $0.3021 per Direct Labor Hours
= $13,776
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