If the materials handling cost is allocated on the basis of direct labor-hours, how much of the…
The controller of Kleyman Company estimates the amount of materials handling overhead cost that should be allocated to the company”s two products using the data that are givenbelow:
Wall Mirrors
Wall Mirrors
Total expected units produced
4,000
4,000
Total expected material moves
500
500
Expected direct labor-hours per unit
7
7
The total materials handling cost for the year is expected to be $28,400.40.
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 off your answer to the nearest whole dollar.)
A) $15,293
B) $16,176
C) $17,287
D) $14,200