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25 July, 01:57

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 8,000 7,000 Total expected material moves 300 900 Expected direct labor-hours per unit 5 7The total materials handling cost for the year is expected to be $38,448. 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:

a. $28,836

b. $22,428

c. $19,224

d. $18,752

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  1. 25 July, 03:50
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    a. $28,836

    Explanation:

    Total Material Moves (300 + 900) 1200

    Rate per material move (38488/1200) 32.07333333

    Allocated material moves for material handling

    wall mirrors (38488/1200*300) 9622

    Speciality windows (38488/1200*900) 28866

    38488

    Therefore, The material handling cost allocated to the speciality windows is closest to $28,836.
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