Under a traditional costing system that allocates overhead on the basis of direct labor hours,the materials handling costs allocated to one unit of wall mirrors would be
A)$1,000
B)$500
C)$2,000
D)$5,000

Question

Quizplus · Accepted Answer

Materials handling costs are overhead costs and traditionally allocated based on direct labor hours. The question does not provide the amount of direct labor hours for one unit of wall mirrors, but it does not affect the answer as we can assume all four options have the same direct labor hours. Therefore, the answer should be the option with the lowest materials handling costs, which is option B ($500).

Under a Traditional Costing System That Allocates Overhead on the Basis