If the materials handling cost is allocated on the basis of

Reference no: EM13604111

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

Modular Homes Prefab Barns
Total expected units produced    9,900 16,000
Total expected material moves        1,000 980
Expected direct labor-hr per unit      560 490

The total materials handling cost for the year is expected to be $200,000.

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?

Reference no: EM13604111

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