How much of total materials handling cost should allocated


The controller of Hallowell 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.............. 2,110 7,110
Total expected material moves.............. 210 710
Expected direct labor-hours per unit...... 7 5

The total materials handling cost for the year is expected to be $18,367.4.


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?

 

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Accounting Basics: How much of total materials handling cost should allocated
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