If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to:
A)$182,325
B)$170,170
C)$93,552
D)$109,395

Question

Quizplus · Accepted Answer

Activity rate = $218,790 ÷ (500 material moves + 100 material moves)= $364.65 per material move
Materials handling cost allocated to Modular Homes = $364.65 per material move × 500 material moves = $182,325
Reference: CH04-Ref31
Nole, Inc., manufactures and sells two products: Product W8 and Product N0.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: 11ea7998_5ec2_dd1f_911b_a7874e0a949a_TB2627_00_TB2627_00 The direct labor rate is $17.40 per DLH.The direct materials cost per unit for each product is given below: 11ea7998_5ec3_0430_911b_35158cd62b36_TB2627_00_TB2627_00 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 11ea7998_5ec3_2b41_911b_c30485722ed5_TB2627_00_TB2627_00

If the Materials Handling Cost Is Allocated on the Basis