# (Question and Answer): cost that should be allocated to the company's two products using the data that are given below:

The controller of Hartis Company 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 7,800 2,700 Total expected material moves 780 980 Direct labor-hours per unit 4 4

The total materials handling cost for the year is expected to be \$18,799.60.

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(Question and Answer): cost that should be allocated to the company's two products using the data that are given below:
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 If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost should be allocated to the wall mirrors? (Round your intermediate calculation to four decimal places. Round your final answer to nearest whole dollar.) \$31,200 \$13,965 \$9,131 \$9,400

The correct answer is \$ 13,965

Note :

 Wall Mirrors Specialty Windows Total expected units produced 7,800 2,700 Direct labor-hours per unit 4 4 Hence, Total Direct Labor Hours  = (Direct labor-hours per unit * Total expected units produced) 31,200.00 10,800.00
 I. Total materials handling cost 18,799.60 II. Total Direct Labor ( Wall Mirrors +Speciality Windows) 42,000.00 Hence, Material Handling Cost Per Direct Labor Hour( I. / II) 0.4476 Per DIrect Labor Hour

total materials handling cost to be allocated to the wall mirrors = Total Direct Labor Hours of Wall Mirrors * Material Handling Cost Per Direct Labor Hour

= 31,200 Hours * \$ 0.4476

= \$ 13,965.12

= \$ 13,965

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