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Question(s) / Instruction(s):

Andujo Company allocates materials handling cost to the companys two products using the below data:

 

                                                                                                Modular Homes               Prefab Barns

  Total expected units produced                                                                7,900                     15,200      

  Total expected material moves                                                               690        1,040      

  Expected direct labor-hour per unit                                       1,100                     750      

The total materials handling cost for the year is expected to be $122,000.

If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the Prefab Barns?

a)            $45,078

b)            $107,351

c)            $83,670

d)            $69,198

 

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