Merone Company allocates materials handling cost to the company's two products using the below data: Total expected units produced Total expected material moves Expected direct labor-hours per unit Modular Homes Prefab Barns 5,500 550 750 8,500 150 250 The total materials handling cost for the year is expected to be $250,000. If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the modular homes is closest to:(Round your intermediate calculations to 2 decimal places.)

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Chapter1: Financial Statements And Business Decisions
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Merone Company allocates materials handling cost to the company's two products using the
below data:
Total expected units produced
Total expected material moves
Expected direct labor-hours per unit
Modular Homes Prefab Barns
5,500
550
750
8,500
150
250
The total materials handling cost for the year is expected to be $250,000. If the materials
handling cost is allocated on the basis of direct labor-hours, the total materials handling cost
allocated to the modular homes is closest to:(Round your intermediate calculations to 2
decimal places.)
Transcribed Image Text:Merone Company allocates materials handling cost to the company's two products using the below data: Total expected units produced Total expected material moves Expected direct labor-hours per unit Modular Homes Prefab Barns 5,500 550 750 8,500 150 250 The total materials handling cost for the year is expected to be $250,000. If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the modular homes is closest to:(Round your intermediate calculations to 2 decimal places.)
The total materials handling cost for the year is expected to be $250,000. If the materials
handling cost is allocated on the basis of direct labor-hours, the total materials handling cost
allocated to the modular homes is closest to:(Round your intermediate calculations to 2
decimal places.)
(A) 150,000.00
B) $165,000.
C $133,523.00
D $85,000.00
E
None of the above.
Transcribed Image Text:The total materials handling cost for the year is expected to be $250,000. If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the modular homes is closest to:(Round your intermediate calculations to 2 decimal places.) (A) 150,000.00 B) $165,000. C $133,523.00 D $85,000.00 E None of the above.
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