Ultimate Vision Corporation Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:

LCD TV’s Projection TV’s

Units Produced 1,500 2,250

Direct labor hours per Unit 20 30

Material Moves per Product Line 15 20

Budgeted Materials Handling Cost $75,000

Total Machine Hours 10,000 16,000

Machine Maintenance Costs $180,000

Refer to Ultimate Vision Corporation.If the company uses total direct labor hours to allocate factory overhead,the materials handing cost allocated to LCD TVs would be: A)$23,077 B)$28,125 C)$30,000 D)$45,000

Question

Ultimate Vision Corporation
Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:

		LCD TV’s	Projection TV’s
Units Produced		1,500	2,250
Direct labor hours per Unit		20	30
Material Moves per Product Line		15	20
Budgeted Materials Handling Cost	$75,000
Total Machine Hours		10,000	16,000
Machine Maintenance Costs	$180,000

Refer to Ultimate Vision Corporation.If the company uses total direct labor hours to allocate factory overhead,the materials handing cost allocated to LCD TVs would be: A)$23,077 B)$28,125 C)$30,000 D)$45,000

Quizplus · Accepted Answer

The total direct labor hours are 1,500 * 20 + 2,250 * 30 = 97,500. The LCD TV's direct labor hours are 1,500 * 20 = 30,000. The materials handling cost allocated to LCD TVs is $75,000 * 30,000 / 97,500 = $23,077.

Ultimate Vision Corporation Ultimate Vision Corporation Has Two Product Lines: LCD Televisions and LCD