Question
The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data
The controller of Ferrence 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 | 7,000 | 1,000 |
| Total expected material moves | 700 | 900 |
| Expected direct labor hours per unit | 6 | 4 |
The total materials handling cost for the year is expected to be $16,486.40.
1 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 wall mirrors? (Round off your answer to the nearest whole dollar.)
| A. | $13,220 | |
| B. | $15,053 | |
| C. | $9,892 | |
| D. | $8,243 |
2. If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost would be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.)
| A. | $3,266 | |
| B. | $9,274 | |
| C. | $8,243 | |
| D. | $6,595 |
3. Personnel administration is an example of (an):
| A. | Unit-level activity | |
| B. | Batch-level activity | |
| C. | Product-level activity | |
| D. | Organization-sustaining activity |
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley
10th Edition
0131457349, 978-0131457348
