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What the total materials handling cost allocated

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Reference no: EM132790010

Merone Company allocates materials handling cost to the company's two products using the below data:
                                                  modular homes                         prefab barns

total expected units produced                 5000                                     8000

total expected material moves                  500                                    100

expected direct labor-hrs p/unit               700                                        200

The total materials handling cost for the year is expected to be $218,790.

Problem 1: If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the prefab barns is closest to:

Reference no: EM132790010

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