Merone Company allocates materials handling cost to the company\'s two products
ID: 2329239 • Letter: M
Question
Merone Company allocates materials handling cost to the company's two products using the below data: Modular re Total expected units produced Total expected material moves Expected direct Labor-hours per unit Homes 6, 700 670 870 Barns 9,700 270 370 The total materials handling cost for the year is expected to be $235,450 If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to. (Round your intermediate calculations to 2 decimal places.) Multiple Choice $167,821.60 $165,194.76 $127.106.00 $171,815.00Explanation / Answer
Answer is $167,821.60
Total Materials Handling Cost = $235,450
Total Expected Materials Moves = 670 + 270
Total Expected Materials Moves = 940
Allocation Rate = Total Materials Handling Cost / Total Expected Materials Moves
Allocation Rate = $235,450 / 940
Allocation Rate = $250.479
Total Materials Handling Cost allocated to Modular Homes = Allocation Rate * Total Expected Materials Moves for Modular Homes
Total Materials Handling Cost allocated to Modular Homes = $250.48 * 670
Total Materials Handling Cost allocated to Modular Homes = $167,821.60