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The controller for a company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data below:
Wall MirrorsTotal expected units produced 2000Total expected material moves 100Expected direct labor hours per unit 7
Specialty WindowsTotal expected units produced 7000Total expected material moves 600Expected direct labor hours per unit 4
The total material handling cost for the year is expected to be $18,257.40
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 wall mirrors?
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How much cost should be allocated to an order of 70 units that requires three shipments to deliver?
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