The controller of Hendershot Corporation estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: The total materials handling cost for the year is expected to be $6,123.60.
If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the wall mirrors is closest to: (Do not round your intermediate calculations.)

Question

The controller of Hendershot Corporation estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below:  The total materials handling cost for the year is expected to be $6,123.60.
If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the wall mirrors is closest to: (Do not round your intermediate calculations.)

Quizplus · Accepted Answer

11eacbfc_c688_265e_8ffe_51e1ea1407b9_TB7552_00 Cost per direct labor-hour = Total materials handling cost ÷ Total direct labor-hours
= $6,123.60 ÷ 63,000 direct labor-hours = $0.0972 per direct labor-hour
Cost allocated to wall mirrors = $0.0972 per direct labor-hour × 36,000 direct labor-hours = $3,499.20

The Controller of Hendershot Corporation Estimates the Amount of Materials