The controller of Hartis Corporation estimates the amount of materials handling overhead cost that should be...

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The controller of Hartis Corporation estimates the amount of materials handling overhead cost that should be...

The controller of Hartis Corporation 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:

	Wall Mirrors	Specialty Windows
Total expected units produced	8,800	1,850
Total expected material moves	880	1,750
Expected direct labor-hours per unit	14	12

The total materials handling cost for the year is expected to be $17,404.50.

If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the specialty windows is closest to: (Round your intermediate calculations to 2 decimal places.)

$5,573

$11,585

$8,902

$10,550

business accounting

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Answer 1

Answer #1

Answer

$11,585

Explanation:

The total materials handling cost = $17,404.50

Total expected material moves = 880+1750= 2,630

The materials handling cost per material move = $17,404.50/2,630 = $ 6.62

The materials handling cost for Specialty Windows = $ 6.62 * 1750 = $ 11,585

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Answer 2

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