How much total materials handling cost would be allocated

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Reference no: EM13646252

Use the following to answer questions:

Swimm Company allocates materials handling cost to the company's two products using the below data:

	Modular Homes	Prefab Barns
Total expected units produced............	3,000	4,000
Total expected material moves............	400	100
Expected direct labor-hours per unit...	700	200

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

D) $36,033

2. If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost would be allocated to the modular homes? (Round off your answer to the nearest whole dollar.)

A) $36,033

B) $57,652

C) $56,051

D) $35,175

Reference no: EM13646252

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