If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the specialty windows is closest to:
A)$1,021
B)$3,674
C)$3,062
D)$1,980

Question

Quizplus · Accepted Answer

11ea7998_5eb9_670b_911b_61177f8da9f1_TB2627_00_TB2627_00 Cost per material move = Total materials handling cost ÷ Total expected material moves
= $6,123.60 ÷ 600 material moves = $10.206 per material move
Cost allocated to specialty windows = $10.206 per material move × 100 material moves = $1,020.60
Reference: CH04-Ref25
Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: 11ea7998_5eb9_8e1c_911b_9bd05eaa8106_TB2627_00_TB2627_00 The direct labor rate is $29.10 per DLH.The direct materials cost per unit is $195.60 for Product W2 and $132.30 for Product P8.
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 11ea7998_5eb9_8e1d_911b_b758e59ef085_TB2627_00_TB2627_00

If the Materials Handling Cost Is Allocated on the Basis