Question
Alpha Company allocates materials handling cost to the company's two products using the below data: The total expected units produced for Modular Homes was 3,000
Alpha Company allocates materials handling cost to the company's two products using the below data:
The total expected units produced for Modular Homes was 3,000 and for Prehab Barns 4,000
Total expected material moves for Modular Homes 400 and for Prehab Barns 100
Expected direct labor hours per unit for Modular Homes was 700 and for Prehab Barns 200
The total materials handling cost for the year is expected to be $72,065
what is the total materials handling cost allocated to the rehab bans if the materials handling cost is allocated on the basis of direct labor hours.
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