Merone Company allocates materials handling costs to the company's two products using the below data: Modular Homes Prefab Barns Total expected units produced Total expected material moves 6,200 9,200 620 220 320 Expected direct labor-hours per unit 820 The total materials handling cost for the year is expected to be $321,120. If the materials handling cost is allocated on the basis of direct labor- hours, the total materials handling cost allocated to the prefab barns is closest to: a. $156,855.00 b. $118,366.98 c. $220,770.00 d. $117,760.00

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
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Merone Company allocates materials handling costs to the company's
two products using the below data:
Modular Homes Prefab Barns
Total expected units produced
Total expected material moves
6,200
9,200
620
220
320
Expected direct labor-hours per unit 820
The total materials handling cost for the year is expected to be $321,120.
If the materials handling cost is allocated on the basis of direct labor-
hours, the total materials handling cost allocated to the prefab barns is
closest to:
a. $156,855.00
b. $118,366.98
c. $220,770.00
d. $117,760.00
Transcribed Image Text:Merone Company allocates materials handling costs to the company's two products using the below data: Modular Homes Prefab Barns Total expected units produced Total expected material moves 6,200 9,200 620 220 320 Expected direct labor-hours per unit 820 The total materials handling cost for the year is expected to be $321,120. If the materials handling cost is allocated on the basis of direct labor- hours, the total materials handling cost allocated to the prefab barns is closest to: a. $156,855.00 b. $118,366.98 c. $220,770.00 d. $117,760.00
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